Food and beverage giant PepsiCo (NASDAQ: PEP) reported mixed financial results for the first quarter of its 2024 fiscal year. While revenue and earnings per share (EPS) exceeded analysts’ expectations, the company missed on its operating and gross margins.
Total revenue increased by 2.3% year-on-year to $18.25 billion, slightly above the consensus estimate of $18.11 billion. Non-GAAP EPS came in at $1.61, surpassing the expected $1.52, marking a 6% beat.
Despite the revenue growth, PepsiCo’s sales volumes declined by 2% year-on-year, indicating a challenge in driving product demand. However, the company was able to offset this decline through price increases, resulting in organic revenue growth of 2.7%.
The company maintained its full-year guidance from the previous quarter, with full-year non-GAAP EPS guidance remaining in line with consensus estimates. PepsiCo’s stock price remained flat after the earnings announcement, currently trading at $175.11 per share.