During the lockdown, PepsiCo Inc boosts up its revenue and profit, as people stocked up the snacks including Tostitos, Cheetos, and Doritos before locking down in their home due to Covid-19 government restrictions. Frito-Lay North America’s unit rose 7 percent in the second quarter.
Chief Executive Officer Ramon Laguarta said, “ Consumers eating habits continued to evolve, with consumer spending more time at home, which benefits the at-home breakfast, snacking and dinner occasions,”. He also added “We gained market share in salty, savoury and macro-snacks in the quarter.
To prevent from Covid-19 people started to order sacks online. Online sales jumped 93.5% and tortilla chips 101.2% for the week ended June 20.
For PepsiCo, sales of snacks under the Frito-Lay North America unit rose 7% in the second quarter ended June 13, while Quaker Oats surged 23%. Revenue at PepsiCo’s North America beverages unit, its biggest, fell 7% as restaurants and other points of sale remained closed, while sports complex are also closed and the sports events were delayed.
The company observed snacks and food business quiet strong apart from the beverage unit, expected to perform better in the second half of this year. Overall, net revenue fell about 3% to $15.95 billion, but analysts estimates of $ 15.38 billion, according to IBES data from Refinitiv. Excluding items, the company earned $1.32 per share, beating wall street estimates of $1.25.
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