Latest news with #FritoLay
Yahoo
3 days ago
- Business
- Yahoo
PepsiCo moves toward North America 'integration' in productivity drive
PepsiCo is seeking to boost its productivity by 'integrating' its two-largest businesses in North America, snacks and drinks. That was one of the key messages to emerge from chairman and CEO Ramon Laguarta's second-quarter results presentation yesterday (17 July) as he outlined an expected 'sequential improvement' in PepsiCo's revenue and market share through the rest of the 2025 financial year. 'One North America will modernise our company and improve our agility and marketplace competitiveness over time,' Laguarta said in his prepared remarks. Laguarta implied the integration will include PepsiCo's Frito-Lay North America reporting and operating division, along with PepsiCo Beverages North America (PBNA), each with revenues in 2024 of $24.8bn and $27.8bn, respectively. It was not clear if Quaker Foods North America, which posted sales last year of $2.7bn, will also feature in the amalgamation but it seems likely judging by the CEO's follow-up comments to analysts' questions. 'When it comes to the North America market, we have one new layer of opportunity that is going to give us a lot of opportunities to improve our cost structure over the next three, four years, which is the North America integration. 'We have two large businesses, almost $30 billion each that have been operating almost a full value chain side by side. Now, with the investments we've made in technology, with the new data that we have in systems, we're going to start looking at those businesses in a more integrated way to perform some of the value chain tasks in an integrated way.' Laguarta highlights synergies The finer details of the workings of that plan have yet to emerge - whether PepsiCo will consolidate its North America business units into one standalone division or still have separate reporting divisions. Integration would 'create both efficiency and cost reduction, but also growth opportunities for the business in a combined way', Laguarta added. He used another adjective, 'synergise', in terms of 'two large operating businesses that are sitting side-by-side servicing the same geographies, the same customers and then the same consumers'. Laguarta explained further: 'That, for us, is a huge idea to optimise how we do most of the task in our value chain, how we do this at low cost and a better performance. 'This will be our priority and where we will focus our efforts for the next three, four years to capture value and come out of this as a lower-cost business and better-performing business.' The PepsiCo chief also outlined historical and ongoing efforts to boost productivity 'enabled by automation, standardisation, and increased use of digital tools and data analytics', which, Laguarta said, 'will provide continuous, ongoing support for our necessary operational investments and commercial activities'. They also include AI. Savings from those productivity initiatives will be 'used primarily to invest in capabilities that accelerate growth and improve profitability', he said. PepsiCo's international division (40% of the company's 2024 group revenue of $91.8bn) was outlined as a key driver of revenue growth at the first-quarter results stage in April. That remains the case but foodservice is also now seen as a major growth opportunity, with innovation at the heart of both the out-of-home and retail push. Laguarta slipped in the planned 'big push' into protein beverages, with no 'artificials', to complement its no-sugar and functional drinks. And also so-called permissible snacks in the health space, including simple ingredient Frito-Lay and Tostitos brands that too will have no 'artificials'. The protein-drinks launch is slated for the final quarter or into the first three months of the next fiscal year, Laguarta suggested, adding: 'We will be participating in the liquid-protein space with, I think, superior propositions that have no artificials, that are great tasting, and that I think will give us the return on what is clearly a consumer trend that is scaling up in the US and it's part of the repertoire of our consumers'. Finance chief Jamie Caulfield said PepsiCo expects to deliver 70% more productivity savings in the second half than in the first six months across the group, much of which will be centred on Frito Lay because of the 'need to right-size the assets and some of the other fixed costs'. 'We're pushing on every cost lever that is available and that's what's going to drive the incremental productivity in the second half,' Caulfield said. "PepsiCo moves toward North America 'integration' in productivity drive" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
4 days ago
- Business
- Fast Company
PepsiCo's Q2 earnings beat Wall Street expectations despite sluggish U.S. sales
PepsiCo reported better-than-expected earnings and revenue in the second quarter despite sluggish North American sales. Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period, PepsiCo said Thursday, while beverage sales were down 2% in the region. But sales rose in some other regions, including Latin America and Asia. Revenue rose less than 1% to $22.7 billion in the April-June period. That was higher than the $22.3 billion Wall Street forecast, according to analysts polled by FactSet. PepsiCo's net income fell 59% to $1.3 billion. Adjusted for one-time items, PepsiCo earned $2.12 per share. That was also higher than the $2.03 analysts forecast. PepsiCo shares rose more than 2% in premarket trading Thursday. PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance Thursday. tariff on imported aluminum from 25% to 50%.
Yahoo
4 days ago
- Business
- Yahoo
PepsiCo posts better-than-expected second quarter despite lower US sales
PepsiCo reported better-than-expected earnings and revenue in the second quarter despite sluggish North American sales. Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period, PepsiCo said on Thursday, while beverage sales were down 2% in the region. But sales rose in some other regions, including Latin America and Asia. Revenue rose less than 1% to 22.7 billion dollars (£17 billion) in the April-June period. That was higher than the 22.3 billion dollars Wall Street forecast, according to analysts polled by FactSet. PepsiCo's net income fell 59% to 1.3 billion dollars (£970 million). Adjusted for one-time items, PepsiCo earned 2.12 dollars per share. That was also higher than the 2.03 dollars analysts forecast. PepsiCo shares rose more than 2% in pre-market trading on Thursday. PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance on Thursday. Its tariff costs have risen since then. In June, the Trump administration hiked the tariff on imported aluminium from 25% to 50%.
BreakingNews.ie
4 days ago
- Business
- BreakingNews.ie
PepsiCo posts better-than-expected second quarter despite lower US sales
PepsiCo reported better-than-expected earnings and revenue in the second quarter despite sluggish North American sales. Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period, PepsiCo said on Thursday, while beverage sales were down 2% in the region. Advertisement But sales rose in some other regions, including Latin America and Asia. Revenue rose less than 1% to 22.7 billion dollars (£17 billion) in the April-June period. That was higher than the 22.3 billion dollars Wall Street forecast, according to analysts polled by FactSet. PepsiCo's net income fell 59% to 1.3 billion dollars (£970 million). Adjusted for one-time items, PepsiCo earned 2.12 dollars per share. That was also higher than the 2.03 dollars analysts forecast. PepsiCo shares rose more than 2% in pre-market trading on Thursday. Advertisement PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance on Thursday. Its tariff costs have risen since then. In June, the Trump administration hiked the tariff on imported aluminium from 25% to 50%.
Al Arabiya
4 days ago
- Business
- Al Arabiya
Pepsico posts better-than-expected second quarter despite lower us sales
PepsiCo reported better-than-expected earnings and revenue in the second quarter despite sluggish North American sales. Sales of Frito-Lay and other snacks fell 1 percent in North America during the April–June period, PepsiCo said Thursday, while beverage sales were down 2 percent in the region. But sales rose in some other regions, including Latin America and Asia. Revenue rose less than 1 percent to $22.7 billion in the April–June period. That was higher than the $22.3 billion Wall Street forecast, according to analysts polled by FactSet. PepsiCo's net income fell 59 percent to $1.3 billion. Adjusted for one-time items, PepsiCo earned $2.12 per share. That was also higher than the $2.03 analysts' forecast. PepsiCo shares rose more than 2 percent in premarket trading Thursday. PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance Thursday. Its tariff costs have risen since then. In June, the Trump administration hiked the tariff on imported aluminum from 25 percent to 50 percent.
