PepsiCo expects business ‘to remain resilient’ for balance of the year

The company said, “We expect our business to remain resilient for the balance of the year, led by our International business and improved performance for our North America business as we prioritize the urgent actions noted above for the balance of this year and into next year. Right sizing our entire cost base is a priority, and significant productivity measures are in place for the current environment and will provide the fuel needed to invest in disciplined commercial activities that aim to accelerate growth. We will mitigate incremental supply chain costs, primarily related to the sourcing of certain global inputs and ingredients and related tariff impacts, for the balance of this year through greater cost savings, sourcing adjustments, and surgical revenue management actions. As a result, for the full year, we continue to expect low-single-digit organic revenue growth and core constant currency EPS to be approximately even with the prior year. We also continue to expect a core annual effective tax rate of 20 percent….As we look beyond this year, our top priorities will be to accelerate annual organic revenue growth and improve annual core operating margin. To accomplish this, we will aim to: Sustain the strong annualized performance and profitability of our International business; Build upon the momentum of PepsiCo (PEP) Beverages North America with our expanded innovation agenda and recent portfolio reshaping actions which should enable the business to make good progress towards a mid-teens operating margin; and Improve the performance trajectory of PepsiCo Foods North America with our innovation agenda, price pack architecture capabilities and significant cost reduction initiatives. Finally, we will also continue to challenge ourselves to identify and examine additional areas of opportunity that can improve our marketplace performance and profitability and appreciate all perspectives provided around shareholder value creation.’