PepsiCo has delivered better-than-expected second-quarter results, buoyed by steady consumer demand across Europe, the United States, and other key global markets.
The performance highlights the company’s resilience in the face of ongoing economic and geopolitical uncertainty.
Like rival Coca-Cola, PepsiCo has adapted to changing consumer tastes by expanding its portfolio of healthier products.
A notable addition is Poppi, a prebiotic soda brand it recently acquired, which caters to health-conscious consumers seeking functional beverages.
In a statement, PepsiCo executives said the company “remained resilient during the second quarter, navigating through a complex geopolitical and macroeconomic environment.”
This marks a positive shift following earlier concerns raised by the company regarding political and economic headwinds in both the US and international markets.
PepsiCo’s North American food division—which includes household snack brands like Lay’s and Cheetos—also showed a rebound in sales volumes.
The improvement is attributed to a mix of lower price points and the introduction of new flavours aimed at a broader range of consumer preferences.
In response to challenges such as the lingering impact of former President Trump’s tariff policy, PepsiCo has adjusted its supply chain strategy, including diversifying the sourcing of key raw materials to reduce exposure.
International markets continue to be a strong contributor, generating around 40% of PepsiCo’s total net revenue.
The company now forecasts a 1.5% drop in full-year core earnings per share—an improvement from the previously anticipated 3% decline.
On a constant currency basis, core earnings are expected to remain flat year-on-year.
Organic revenue in the North American beverages segment rose by 1% during the quarter, recovering from a 2% dip in the prior period.
Total second-quarter revenue grew by about 1% to $22.73bn, surpassing analyst expectations of a slight decline.
Excluding impairment charges, earnings reached $2.12 per share—comfortably ahead of the $2.03 forecast.
For Irish investors and partners, PepsiCo’s performance reflects a stable global demand for its brands, even amidst economic turbulence
