Beverage giant PepsiCo (PEP +0.51%) released a second-quarter earnings report on Monday morning that showed a 3% decrease in sales. Earnings per share slid 18%, but the company still turned a profit.
Hanging in there
PepsiCo generated $16 billion in revenue for the quarter ended June 13. Earnings per share were $1.18, down from $1.44 last year.
"Despite being faced with significant challenges and complexities as a result of the COVID-19 pandemic, our businesses performed relatively well during the quarter, with a notable level of resiliency in our global snacks and foods business," said CEO Ramon Laguarta.
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Strong brands
While there was an overall sales drop, some PepsiCo-owned brands performed very well.
Frito-Lay North America sales increased 7%, and Quaker Foods North America sales increased 23%. These are both popular snack brands, and many Americans relied on their favorite snacks while shut indoors during the pandemic.
PepsiCo Beverages, on the other hand, which has a large on-the-go sales model, had declining sales in North America, decreasing 7%. Latin American sales fell 17% and European sales fell 9%, but in Asia, where the lockdowns had mostly ceased in the second quarter, sales rose 10%.
In all regions besides Europe, where sales were even, snack sales outdid beverage sales.
Future outlook
Due to continued uncertainties, the company declined to give an outlook. It confirmed, however, that it has a strong cash position, ending the quarter with $9 billion in cash and cash equivalents. It expects to pay $5.5 billion in dividends and $2 billion in share repurchases.
