PepsiCo ($PEP (-1,16%) ) published its results for the first quarter of 2025 and narrowly missed expectations with earnings per share (EPS) of USD 1.48 (forecast: USD 1.51). However, revenue of USD 17.92 billion exceeded expectations of USD 17.78 billion. The share price reacted with a pre-market decline of 0.94% to USD 142.26.
Key findings
- EPS: USD 1.48 (below expectation of USD 1.51)
- Sales: USD 17.92 billion (above expectation of USD 17.78 billion)
- Organic sales growth: 1%
- Frito-Lay North America showed subdued development
- Outlook for the year as a whole adjusted (new tariffs, macroeconomic uncertainties)
Corporate performance
The company achieved slight sales growth despite difficult conditions and confirmed its target of low single-digit organic growth for the year as a whole. The subdued performance of Frito-Lay North America slowed growth, but led to a stronger strategic focus on efficiency and value investments.
Financial highlights
- Sales exceeded forecast by USD 140 million
- EPS slightly below expectations
- Sales growth supported primarily by international business
Outlook & forecast
PepsiCo revised its outlook for the year due to economic uncertainties and emphasized the importance of international markets as a key source of growth. The company plans to optimize its global portfolio and secure long-term operational strength.
Management statements
CEO Ramon LaGuarta emphasized the role of international markets as growth drivers. CFO Jamie Caulfield emphasized the goal of ensuring the long-term stability and profitability of the business model.
Risks & challenges
- New tariffs burden cost structure
- Macroeconomic uncertainties influence consumer behavior
- Weak performance in North America (Frito-Lay)
- Potential regulatory intervention for ingredients
