PepsiCo reports 0.4% revenue growth amid declining North American sales 

USA – Global food and beverage giant PepsiCo has reported a 0.41 percent increase in net revenue to US$91.8 billion for the year ending December 2024, despite challenges in its North American market. 

In the fourth quarter, the company’s revenue grew by 0.2 percent to US$27.78 billion, falling slightly short of analysts’ expectations of US$27.91 billion and remaining flat compared to the previous year. 

This marks the third consecutive quarter of revenue misses, primarily due to declining sales volumes in North America, where demand for snacks and beverages dropped by 1 percent. 

PepsiCo Chairman and CEO Ramon Laguarta acknowledged the challenges stating: “Our businesses remained resilient in 2024, despite subdued category performance trends in North America, the continued impacts related to a recall in our Quaker Foods North America division, and business disruptions due to geopolitical tensions in certain international markets.” 

The company’s North American beverage unit reported a 3 percent decline in quarterly volume.  

To counter slowing sales, PepsiCo executives revealed plans to expand its portfolio into protein drinks, capitalizing on the growing demand driven by the increasing adoption of GLP-1 drugs. 

Quaker Foods North America continued to struggle, with a 6 percent decline in volume due to a recall in December 2023. However, executives anticipate improved performance in 2025 as the business recovers. 

PepsiCo’s Africa, Middle East, and South Asia (AMESA) division recorded a 1.27 percent increase in net revenue to US$6.21 billion in 2024, driven by effective pricing strategies and organic volume growth. 

Convenience foods unit volume grew 2 percent, with mid-single-digit growth in South Africa and double-digit growth in India. Beverage unit volume also increased by 1 percent, led by strong demand in India. 

For the fourth quarter, AMESA’s net revenue rose by 5 percent to US$2.03 billion, reflecting sustained growth in emerging markets. 

PepsiCo reported a fourth-quarter net income of US$1.52 billion, or US$1.11 per share, up from US$1.3 billion, or 94 cents per share, in the prior year. 

Looking ahead, the company expects a low-single-digit increase in organic revenue and a mid-single-digit rise in core constant currency earnings per share for 2025. 

To reinforce investor confidence, PepsiCo announced a 5 percent increase in its annualized dividend per share, marking its 53rd consecutive annual dividend hike. 

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