Ankara:PepsiCo lowered its full-year earnings forecast as a slower-than-expected recovery in its North American business continues to affect profitability, despite stronger international demand.

According to Anadolu Agency, the US food and beverage company now anticipates core earnings per share to grow between 2.5% and 3.5% in 2026, down from a previous target on the low end of a 5% to 7% range. However, PepsiCo expects annual net revenue growth to reach about 6%, aligning with the upper end of its earlier guidance of 4% to 6%.

For the third quarter, PepsiCo reported a 5.6% increase in revenue from the previous year, amounting to $25.27 billion, exceeding analysts' expectations. Adjusted earnings were $2.34 per share, surpassing forecasts, and net income attributable to PepsiCo rose to $3.05 billion, or $2.23 per share, compared to $2.6 billion, or $1.90 per share, a year ago. Organic revenue, excluding acquisitions, divestitures, and currency impacts, increased 3.1%.

Chairman and CEO Ramon Laguarta noted that PepsiCo's North American business underperformed expectations, presenting a significant opportunity for improvement. North American beverage volumes dropped by 2%, while food volumes remained steady. CFO Steve Schmitt acknowledged that the recovery in domestic operations is progressing more slowly than anticipated.

International operations have been more robust, contributing 41% of the company's revenue so far this year, as stated by Laguarta. To support its recovery, PepsiCo is concentrating on product innovation and marketing, offering snacks with simpler ingredients and enhanced nutritional value, as well as functional hydration products, energy drinks, and zero-sugar beverages. Laguarta also mentioned plans to cut redundancies and discretionary spending to fund investments in these areas.