PepsiCo reports strong Q4 revenue with price hikes offsetting falling demand

PURCHASE, NY (AP) — PepsiCo reported higher-than-expected gross successful the 4th fourth arsenic higher prices and improved productivity offset continued weakness successful North American request for its snacks and drinks.

Revenue roseate 5.6% to $29.3 cardinal successful the October-December period. That was higher than the $28.9 cardinal Wall Street was expecting, according to analysts polled by FactSet.

Volumes for snacks similar Doritos and Cheetos fell 1%, portion North American beverage volumes dropped 4%, the Purchase, New York, institution said Tuesday. Globally, beverage volumes roseate 1% portion nutrient volumes fell 2%.

PepsiCo hiked prices by 4.5% globally during the quarter. Prices for PepsiCo beverages roseate 7% successful North America, portion prices for the company’s snacks ticked up 1%.

But terms cuts could beryllium connected the horizon. PepsiCo said successful December it planned to chopped prices and trim astir 20% of its merchandise offerings arsenic portion of a woody with activistic capitalist Elliott Investment Management. The institution has acknowledged that years of double-digit terms increases and changing user preferences person weakened request for its products.

Elliott, which took a $4 cardinal involvement successful PepsiCo successful September, has been prodding the company’s committee to marque changes, saying PepsiCo was being wounded by slowing maturation and little profits successful its North American nutrient and beverage business.

PepsiCo said it besides planned to accelerate the instauration of caller offerings with simpler and much functional ingredients, including Doritos Protein and Simply NKD Cheetos and Doritos, which incorporate nary artificial flavors oregon colors.

The institution besides precocious introduced Pepsi Prebiotic, which it said sold retired wrong 30 hours aft its instauration connected Black Friday. PepsiCo said the soda volition soon beryllium disposable crossed the U.S.

Adjusted for one-time items, PepsiCo earned $2.26 per stock successful the 4th quarter. That was besides higher than analysts expected.