PURCHASE (dpa-AFX) - PepsiCo, Inc. on Thursday reported lower profit in its third quarter, while core earnings per share and top line beat market estimates. Further, the firm maintained its fiscal 2025 outlook.
Separately, the food and beverage giant announced that it has appointed Walmart Inc.'s Steve Schmitt as Executive Vice President and Chief Financial Officer with effect from November 10. Schmitt will take over from Jamie Caulfield, who is set to retire next year after more than 30 years with the company.
Caulfield will continue in the role until November 10 and will serve as an advisor, supporting the transition, through May 15, 2026.
Schmitt currently serves as Executive Vice President and Chief Financial Officer for Walmart U.S. He joined Walmart in 2016 and served in multiple leadership positions in their e-Commerce, Club, and mass businesses. Prior to that, Schmitt held a variety of roles at Yum! Brands, and UPS.
In the pre-market activity on the Nasdaq, PepsiCo is trading 0.03 percent lower at $138.80.
Chairman and CEO Ramon Laguarta, said, 'As we look ahead to the balance of this year and beyond, our top priorities are to accelerate growth and aggressively optimize our cost structure. To accomplish this, we are introducing a strong pipeline of innovation to accelerate portfolio transformation, continuously sharpening our price pack architecture to provide good value to consumers, and right sizing our entire cost base to help fund our activities.'
For 2025, PepsiCo continues to expect a low-single-digit increase in organic revenue, and core constant currency earnings per share to be approximately even with the prior year.
The company now expects foreign exchange translation headwind of around 0.5 percentage points to negatively impact earnings per share growth, compared to previous estimate of an approximate 1.5- percentage-point headwind.
The change implies a 0.5 percent decline in core earnings per share from 2024 core earnings per share of $8.16, compared to previously expected 1.5 percent decline.
In the third quarter, Pepsico's net income attributable came in at $2.60 billion, compared to $2.93 billion last year. Earnings per share dropped 11 percent to $1.90 from $2.13 a year ago.
Core earnings were $3.14 billion or $2.29 per share for the period, compared to $3.19 billion or $2.31 per share a year ago.
Analysts on average had expected the company to earn $2.26 per share. Analysts' estimates typically exclude special items.
The company's revenue for the period rose 2.7 percent to $23.94 billion from $23.33 billion last year. The Street was looking for revenues of $23.85 billion for the quarter.
Organic revenue increased 1.3 percent.
PepsiCo attributed the net revenue growth to the resilience of its international business, improved momentum within North America Beverages and the benefits of portfolio reshaping actions.
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