PepsiCo is famous for its products around the world. However, even for this company, the coronavirus pandemic is a serious challenge. Based on the information provided by the company, it decided not to provide an outlook for the fiscal year of 2020 at this time, due to two factors. These were the continued volatility as well as the uncertainty regarding the pandemic.
Let’s have a look at some figures. In the second quarter, the company reported earnings per share of $1.32 adjusted. Interestingly, this result is higher than expected. The revenue reached $15.95 billion. Analysts expected that revenue would reach $15.38 billion originally.
As a reminder, the second quarter ended on June 13. PepsiCo reported a net income of $1.65 billion or $1.18 per share. Thus, compared to the second quarter in 2019, net income fell from $2.04 billion or $1.44 per share to $1.65 billion.
PepsiCo and interesting details
As stated above, the coronavirus pandemic created a lot of problems. The company spent nearly $400 million on costs related to the pandemic. PepsiCo provided personal protective equipment for its employees.
E-commerce became very important for the company. This spring, more precisely in May, PepsiCo launched two e-commerce websites snacks.com and pantryshop.com.
This week, PepsiCo reported that its quarterly revenue fell as fewer customers bought its drinks at restaurants or convenience stores. This is not surprising, as governments implemented various measures to tackle the coronavirus pandemic.
On the positive side, products like Cheetos as well as oatmeal saw strong growth. Moreover, the company’s investments, especially from the last year which range from rejuvenating some of its legacy brands to growing e-commerce sales, helped to improve the situation.
PepsiCo also plans to use the lessons learned during the pandemic. For example, new consumer trends and the revival of forgotten habits will be essential. The company plans to use this experience to develop its business.