LONDON (ShareCast) - (Sharecast News) - PepsiCo beat profit forecasts in the fourth quarter, though revenues came in shy of analysts' expectations as weak demand in North America and the continued impact from Quaker recalls affected the top line.
The Doritos, Mountain Dew and Gatorade manufacturer reported a 14% year-on-year increase in core earnings per share at constant currency to $1.96, marginally ahead of the $1.94 expected.

However, net revenues were down 0.2% at $27.78bn, slightly short of the $27.89bn expected.

International sales improved year-on-year, albeit only slightly as a result of "business disruptions due to geopolitical tensions", according to chief executive and chair Ramon Laguarta.

PepsiCo Beverages North America only grew sales by 0.5%, while the Quaker Foods North America cereal division saw a 14% drop in sales due to a previously announced voluntary recall of certain bars and cereals, and Frito-Lay North America snack business saw a 1% revenue decline.

For the year, net revenues rose by just 0.4% to $91.85bn while core EPS increased 9% to $8.16.

"Looking ahead to 2025, we will continue to build upon the successful expansion of our international business, while also taking actions to improve performance in North America," Laguarta said.

The company is guiding to low-single-digit organic revenue growth and mid-single-digit core constant currency EPS growth in 2025.

The stock was 4.2% lower at $143.93 by 1055 in New York.

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