- PepsiCo Inc PEP Stocks are up Tuesday morning after the first quarter Resultssurpassed the Street View.
- PEP reported Q1 FY23 revenue grew 10.2% year over year to $17.85 billion, beating the consensus of $17.22 billion.
- Frito-Lay North America net sales increased 15% year over year, Quaker Foods North America increased 9% and PepsiCo Beverages North America increased 8%.
- Sales in Latin America were up 21% year over year and sales in Europe were up 5%.
- Gross profit increased 12.4% year over year to $9.7 billion and profit margin increased 112 basis points year over year to 55.2%.
- Operating margin declined 1,778 basis points to 14.7%, and operating income for the quarter fell 50% to $2.6 billion.
- The company had $4.8 billion in cash and cash equivalents as of March 25, 2023. Net cash used in operations for the quarter totaled $($392) million.
- Adjusted earnings per share of $1.50 beat analyst consensus of $1.39.
- outlook: PepsiCo raised guidance for FY23 organic sales growth to 8% (previous guidance 6%).
- PepsiCo’s core EPS grew 9% currency-neutral (up from 8%).
- The assumption implies a core EPS of $7.27 in 2023 compared to a core EPS of $6.79 in 2022.
- Total cash return to shareholders is expected to be approximately $7.7 billion, comprised of $6.7 billion in dividends and $1.0 billion in share repurchases.
- Price promotion: PEP shares are trading up 1.30% at $187.92 premarket on the latest check Tuesday.
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