PepsiCo released its latest quarterly earnings and revenue that topped analysts’ expectations, on the back of advertising and marketing impact.
The beverage giant’s adjusted earnings for the fiscal third-quarter came in at $1.56 per share, exceeding the $1.50 expected by analysts polled by Refinitiv.
Revenue of $17.19 billion also beat analysts’ estimate of $16.93 billion.
Pepsi’s organic revenue grew by +4.3% in the quarter.
The company’s increased advertising has been cited as a major drive behind consumers purchase of Pepsi products, as indicated by CFO Hugh Johnston in a CNBC interview.
Pepsi’s North American beverage business grew +3.5%.
Frito Lay North America, which includes brands like Cheetos and Doritos, experienced revenue growth of +5.5% for the quarter.
What’s more, Pepsi’s apparent drive to cater to an increasingly health-conscious population seems to be paying off. Revenue growth from its healthier snacks' brands like Bare and Off the Eaten Pat (alongwith its popular chip brands) helped offset the double-digit sales declines of Sabra hummus and guacamole dips. Pepsi owns a 50% stake in the hummus maker through a joint venture with Strauss Group.
The brand’s no-sugar line, Gatorade Zero, which launched in May 2018, topped $500 million in retail sales. Meanwhile, Bubly continues to gain market share in the flavored sparkling-water category against rivals like La Croix (as mentioned in CNBC).