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PepsiCo forecasts 2024 revenue growth of 4%, below estimates

February 9, 2024 6:21 AM
(Updated - February 9, 2024 7:10 AM EST)

Investing.com -- PepsiCo (NASDAQ: PEP) has unveiled a full-year forecast for organic revenue growth of at least 4%, below Bloomberg consensus expectations of 5.2%, as the food and beverage group flagged waning benefits from elevated prices.

Soaring post-COVID inflation has helped to fuel top-line growth at Pepsi, although these price gains have begun to fade due in part to higher interest rates.

In a statement, Chief Executive Officer Ramon Laguarta said marketplace conditions are "changing" heading into its 2024 fiscal year, with shopping behaviors reverting "to pre-pandemic norms and net revenue realization [moderating] as inflationary pressures are expected to abate."

Shares in the Doritos chips owner slipped in premarket U.S. trading on Friday.

In Pepsi's fourth quarter, core per-share earnings grew to $1.78 from $1.67 year-on-year, despite an uptick in costs related to items like cooking oil and seasonal ingredients denting income by eight percentage points at its crucial Frito-Lay North America division.

Laguarta said he was pleased with Pepsi's overall performance in 2023, but noted the impact of macroeconomic volatility, geopolitical tensions and international conflicts.

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