PepsiCo’s second-quarter revenue fell short of expectations as demand for its snacks and sodas, particularly in the U.S., its primary market, weakened.
Consumers concerned about inflation reduced spending, choosing smaller packs and cheaper alternatives despite higher prices from major food brands.
Despite increasing prices by 5%, PepsiCo saw a 3% decline in organic sales volume, prompting intensified promotional efforts to stimulate growth.
Sales from North America beverages and Frito-Lay units remained crucial contributors to overall revenue.
PepsiCo reported net revenue of $22.50 billion, slightly below analysts’ expected $22.57 billion, while net income increased to $3.08 billion.