(New York) PepsiCo published Friday a decline in fourth-quarter sales, weighed down in particular by Quaker cereals, but the agri-food group expects a return to growth this year.
Revenues stood at $27.8 billion, down 0.5% year-on-year and below the $28.3 billion projected by analysts.
The publication was poorly received by Wall Street and PepsiCo shares lost nearly 2% in electronic trading prior to the opening of the New York Stock Exchange.
The Purchase (New York State) group particularly suffered on the Quaker brand (cereals and energy bars) in the United States (-16%), affected by major recalls due to possible salmonella contamination.
All PepsiCo divisions saw their turnover decline, with the exception of Latin America (+18%), which benefited from price increases, according to a press release.
Several of them have incurred cost increases, including potatoes and cooking oil for Frito-Lay in North America, which includes Lays and Doritos chips or Cheetos appetizer cookies.
Net profit stands at $1.3 billion, more than doubled compared to the same period last year (+147%).
This increase is explained, in part, by a favorable comparison effect, the last quarter of 2022 having been marked by significant exceptional charges.
Reported per share and excluding exceptional items, the indicator most followed by the market, net profit was $1.78, better than the $1.72 expected by analysts.
“Pepsi has a diversified portfolio with strong brands, but repeated price increases have ended up weighing on sales,” commented Aarin Chiekrie, analyst at Hargreaves Lansdown.
“We are confident that our brands will perform well in 2024, in a context of changing market conditions,” said CEO Ramon Laguarta, quoted in the press release.
According to the manager, consumer trends are returning to their pre-coronavirus pandemic characteristics.
Ramon Laguarta is also counting on a less aggressive pricing policy, due to the slowdown in inflation.
For the entire 2024 financial year, PepsiCo expects organic growth of at least 4% and an increase of at least 8% in its earnings per share excluding exceptional items.
“As cost increases subside, price increases should also moderate,” predicts Aarin Chiekrie. “Investors hope this will revive demand. »