PepsiCo posts surprise drop in quarterly revenue, cuts sales forecast

Pepsico lowers its fiscal 2024 sales growth forecast to low single digits from 4%. Q3 net revenue was $23.32 billion, below analysts' expectations.

Pepsico posted a surprise drop in third-quarter revenue and cut its forecast for annual organic sales growth on Tuesday, as cautious consumer spending in North America weighs on demand for its sodas and Frito-Lay snacks.

Pepsico's third-quarter revenue fell to $23.32 billion, down from $23.45 billion, leading to a lowered forecast for 2024 organic sales growth. The company attributes the decline to cautious consumer spending on sodas and snacks. (Bloomberg)

The packaged food giant expects fiscal 2024 organic sales to grow in a low single-digit range. It had previously forecast a 4% rise.

Net revenue came in at $23.32 billion in the quarter ended Sept. 7 from $23.45 billion last year.

Analysts estimated a 1.3% jump in revenue to $23.76 billion, according to data compiled by LSEG.