Companies around the world are trying to adapt to the new reality and world-famous company PepsiCo is not an exception. On Monday, the company reported that its quarterly revenue fell as fewer customers bought its drinks at restaurants or convenience stores. The governments implemented various measures to limit the spread of the virus.
Hopefully, its food business reached better results. For example, products like Cheetos as well as oatmeal saw strong growth. Interestingly, Pepsi’s investments especially the investments from last year which range from rejuvenating some of its legacy brands to growing e-commerce sales helped the company.
Importantly, the company plans to use the lessons of the pandemic such as new consumer trends and the revival of forgotten habits. As a result, the company plans to use this experience to develop its business.
PepsiCo and interesting details
According to the company, it would not be providing an outlook for fiscal 2020 at this time. PepsiCo cited two major factors. The first one is the continued volatility and the second one is the uncertainty regarding the pandemic.
Shares of the company advanced less than 1% in morning trading.
Let’s have a look at what the company reported compared with expectations. For example, earnings per share in the quarter $1.32 adjusted. This result is higher than expected. Moreover, revenue reached $15.95 while analysts expected that revenue would reach $15.38 billion.
The second quarter ended on June 13. In the second quarter, the company reported net income of $1.65 billion or $1.18 per share. As a result, compared to the same period of time in 2019, net income fell from $2.04 billion or $1.44 per share to $1.65 billion.
PepsiCo spent nearly $400 million on costs related to the pandemic. The company allocated part of this money on personal protective equipment for employees.
The company is willing to invest in e-commerce. In May, PepsiCo launched two e-commerce websites snacks.com and Pantryshop.com.
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