PepsiCo continues to expect low-single-digit increase in FY25 organic revenue

For 2025, the Company continues to expect: A low-single-digit increase in organic revenue; Core constant currency EPS to be approximately even with the prior year; A core annual effective tax rate of approximately 20 percent; and Total cash returns to shareholders of approximately $8.6B comprised of dividends of $7.6B and share repurchases of $1B. The Company now expects foreign exchange translation headwind of approximately 0.5 percentage points to negatively impact reported net revenue and core EPS growth, previously an approximate 1.5-percentage-point headwind, based on current market consensus rates. This assumption and the guidance above implies a 0.5 percent decline in core EPS in 2025, previously a 1.5 percent decline in core EPS) compared to 2024 core EPS of $8.16. “Our reported net revenue growth accelerated and reflects the resilience of our international business, improved momentum within North America Beverages and the benefits of our portfolio reshaping actions,” said Chairman and CEO Ramon Laguarta. “As we look ahead to the balance of this year and beyond, our top priorities are to accelerate growth and aggressively optimize our cost structure. To accomplish this, we are introducing a strong pipeline of innovation to accelerate portfolio transformation, continuously sharpening our price pack architecture to provide good value to consumers, and right sizing our entire cost base to help fund our activities. As a result, for fiscal 2025, we continue to expect to deliver low-single-digit organic revenue growth with core constant currency EPS to be approximately even with the prior year. Our full year core USD EPS outlook has improved due to a more favorable outlook on foreign exchange translation rates for the balance of this year.”