What’s Driving PepsiCo’s Growth This Year?
PepsiCo‘s (NYSE:PEP) net sales through the first three quarters of the year declined 3%, despite a solid 4% organic growth, due to currency headwinds and structural impacts. But what holds positive for the company is its continual reliance on the domestic market. North America (U.S. and Canada) formed just over 63% of PepsiCo’s net revenue through September, and the continual solid performance of the Frito-Lay North America division is what shines brightest among that of other divisions.
Furthermore, PepsiCo derived 8% organic revenue growth in developing and emerging markets in the third quarter, including an 11% growth in China and Mexico, and a surprising 7% revenue growth in Russia, where the consumer is starting to rebound. Strengthening international growth is good news for PepsiCo, and backed by the solid performance of the Frito-Lay North America division, the company could achieve its targeted adjusted EPS growth of 10% for 2016 — an estimate it raised for the second consecutive quarter following the Q3 results announcement.
Have more questions on PepsiCo? See the links below.
- PepsiCo Raises Its EPS Guidance For The Second Straight Quarter
- PepsiCo Raises Profit Guidance For The Third Consecutive Year
- PepsiCo Earnings Review: Macroeconomic Headwinds Bring Down An Otherwise Strong Core Performance
- PepsiCo: The Year 2015 In Review
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- What’s PepsiCo’s Fundamental Value Based On Expected 2016 Results?
- By What Percentage Have PepsiCo’s Revenues And EBITDA Grown Over The Last Five Years?
- Where Will PepsiCo’s Revenue And EBITDA Growth Come From Over The Next Three Years?
- How Has PepsiCo’s Revenue And EBITDA Composition Changed Over 2012-2016E?
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