Daily Management Review

PepsiCo withdraws annual forecast amid COVID-19 pandemic


US PepsiCo Inc., one of the world's largest soft drink manufacturers, cut its net profit in the first fiscal quarter of this year and revoked its annual forecast due to uncertainty amid the coronavirus pandemic.

According to the company’s press release, its net profit for the 12 weeks ending March 21 was $ 1.338 billion, or $ 0.96 per share. For the comparable period of the previous year, the figure was $ 1.413 billion, or $ 1 per share.

Meanwhile, the company's revenue increased to $ 13.881 billion, compared with $ 12.884 billion for the same period a year earlier. Analysts surveyed by FactSet, on average, forecast earnings of $ 1.03 per share on revenue of $ 13.192 billion.

"Despite the good performance in the first quarter, significant uncertainty remains associated with COVID-19," the company said.

"Due to this uncertainty, the financial forecast made by the company for the fiscal year 2020 can no longer be applied," the report said.

PepsiCo stock prices during electronic trading on Tuesday were up 0.4%. The company's capitalization over the past three months has decreased by 5.6% and now stands at $ 186.8 billion.

source: bloomberg.com