After PepsiCo has declared its Q2 earnings, PEP stock price has started to move higher.

As most companies roll out their financial figures for the previous quarter, an exposition has been seen as to which company showed the most resilience in the face of the coronavirus pandemic. Food and beverage companies are undoubtedly among the top gainers but the degree of growth is largely relative. The shares of PepsiCo Inc (NASDAQ: PEP) showed a positive rally after the company declared its Q2 2020 earnings showing a slight dip in revenue.

PepsiCo stock rose by 1.85% (+$2.49) in the pre-market trading on Monday to sit at $136.95 per share. Typically, investors are reacting positively to the announcement despite the recorded plunge in revenues as compared to the same time last year. Glaring that the coronavirus pandemic had a subtle impact on the company’s outlook, investors have confidence in the positive aspects of the revealed earnings.

PepsiCo: Background and Global Outlook

PepsiCo, Inc. is American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. The soft drink Pepsi was developed by Caleb Bradham, a pharmacist, and businessman from Duplin County, North Carolina.

As of January 26, 2012, 22 of PepsiCo’s brands generated retail sales of more than $1 billion, and the company’s products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second-largest food and beverage business in the world, behind Nestlé SA (SWX: NESN). Within North America, PepsiCo is the largest food and beverage business by net revenue. Ramon Laguarta has been the chief executive of PepsiCo since 2018. The company’s beverage distribution and bottling are conducted by PepsiCo as well as by licensed bottlers in certain regions around the world.

PepsiCo Q2 Earnings amid COVID-19 Pandemic

The company’s snack and food business showed a great performance during the pandemic. Net income fell to $1.65 billion, or $1.18 a share, from $2.04 billion, or $1.44 a share, in the year-ago period. Core earnings rose by $1.32 per share surpassing the $1.25 expectations. The expected revenue of $15.38 billion came to $15.95 billion.

Frito-Lay North America saw organic sales growth of 6.6% with revenue pegged at $4.27 billion. While Quaker Foods North America reported organic revenue growth of 23% ($664 million), PepsiCo’s North American beverage unit saw its organic revenue fall 7%, despite growth at supermarkets and dollar stores. In the second quarter ended June 13, Pepsi reported net income of $1.65 billion, or $1.18 per share, down from $2.04 billion, or $1.44 per share, a year earlier. PepsiCo CEO, Ramon Laguarta noted in a press release:

“I’m very pleased with the way our organization has protected our associates and served the needs of our customers, consumers, and communities throughout these incredibly difficult times. Despite being faced with significant challenges and complexities as a result of the COVID-19 pandemic, our businesses performed relatively well during the quarter, with a notable level of resiliency in our global snacks and foods business.”

Based on the unstable business nature of the world, Laguarta has confirmed the company will not be making any projections for the 2020 fiscal year and will not relent in driving “liquidity and flexibility to meet the needs of our business and return cash to shareholders” Laguarta affirmed.

More business news can be found here.

Business News, Market News, News, Stocks, Wall Street

Benjamin Godfrey
Author Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *