PepsiCo increased its net profit by 43.3% and revenues by 20.5% in the second quarter of fiscal year 2021, while the results exceeded market expectations. The company’s net income for the twelve weeks ended June 12 was $ 2.358 billion, or $ 1.7 per share, compared to $ 1.646 billion, or $ 1.18 per share, earned in the comparable period a year earlier. Profit excluding one-off factors rose to $ 1.72 from $ 1.32 per share. Revenue increased to $ 19.217 billion from $ 15.945 billion. Organic growth was 12.8%. Market consensus assumed adjusted earnings of $ 1.53 per share on revenue of $ 17.96 billion.
PepsiCo management has improved its forecast for fiscal 2021. Management expects organic revenue growth of 6%. Earlier, the indicator was expected to increase by the value “in the middle of the first ten”. At the same time, the rise in adjusted earnings per share is expected to be around 11% compared to the previous forecast of “less than 10%”. The company also announced new initiatives to restructure its operating activities, which will reduce annual costs by up to $ 1 billion through 2026.
We love PepsiCo’s unique business model and the company’s position in the global marketplace. As one of the largest food and beverage companies, PepsiCo continues to maintain a strong market position in both snacks and soft drinks. We believe that the PepsiCo product line is correctly positioned in the face of current market trends. This competitive advantage could allow the company to continue to gain market share in the Consumer Packaged Goods category. We have a positive view on the outlook for PepsiCo’s business.
PepsiCo is the world’s leading snack and liquid refreshment beverage company, as well as the #2 CSD company globally. The company has a vast portfolio of brands, including Lay’s, Doritos, Cheetos, Tostitos, and Ruffles within salty snacks, and Pepsi, Mountain Dew, Gatorade, and Tropicana, within beverages