PepsiCo reported a rise in second-quarter revenue to $22.73 billion, slightly above market expectations.
Earnings came in at $2.12 per share, excluding certain charges, also beating estimates.
The company saw steady demand for its snacks and drinks in the United States and Europe. North America food brands, including Lay’s and Cheetos, improved volume by offering products at lower prices and new flavours.
The North America beverage unit posted a 1 percent increase in organic revenue, recovering from a 2 percent decline in the previous quarter.
PepsiCo said it would rebrand Lay’s and Tostitos with no artificial colours or flavours by the end of the year. Its K-12 food line will also stop using artificial colours.
The company said consumer preferences are shifting toward natural ingredients and sugar, and it will adjust its offerings accordingly.
To manage lower demand in some snack categories, PepsiCo is closing certain manufacturing sites and making related changes to its workforce. The company also said it is adjusting raw material sourcing to manage the impact of tariffs under President Donald Trump’s trade policy.
Shares rose 6 percent as the company forecast a smaller drop in annual profit. Full-year core earnings per share are now expected to fall 1.5 percent, compared with a 3 percent decline earlier. The company kept its forecast for flat core earnings on a constant currency basis. PepsiCo’s international business makes up about 40 percent of its total revenue.
