“Our business remains resilient, despite an increasingly challenging and complex geopolitical and macroeconomic environment,” said Ramón Laguarta, CEO of PepsiCo.
The company now expects its net profit for the year to decline by 3%, a sharp revision from the 5% increase projected back in January. In addition to geopolitical factors, the downgrade also reflects unfavorable exchange rate movements, which are expected to weigh on revenues.
Despite the lowered profit outlook, PepsiCo maintained its forecast for up to 5% growth in organic revenue, which excludes currency impacts. The company also confirmed its intention to return €7.6 billion to shareholders by the end of the year.
Looking ahead, Laguarta warned of continued instability. “More volatility and uncertainty are expected, particularly in the evolution of global trade, with an increase in supply costs,” he noted.
