PepsiCo (NASDQ:PEP) on Monday reported that its quarterly revenue fell as fewer consumers bought its drinks at restaurants or convenience stores as a consequence of the coronavirus pandemic.
The company did report growth for its food items, such as Cheetos and oatmeal, in the quarter.
The empire, built on soft drinks and branching out to other food products, said that it would not be providing an outlook for fiscal 2020 at this time, citing the continued volatility and uncertainty surrounding the pandemic.
In the second quarter ended June 13, Pepsi reported net income of $1.65 billion, or $1.18 per share, down from $2.04 billion, or $1.44 per share, a year earlier.
CEO Ramon Laguarta said that the company spent nearly $400 million on costs related to the pandemic, including personal protective equipment for employees. CFO Hugh Johnston told the media those added costs will likely diminish going forward.
Excluding items, the company earned $1.32 per share, beating the $1.25 per share expected by analysts.
Net sales dropped 3.1% to $15.95 billion, topping expectations of $15.38 billion. The company’s organic revenue, which strips out foreign currency, acquisitions and divestitures, fell 0.3%.
PepsiCo’s North American beverage unit saw its organic revenue fall 7%, despite growth at supermarkets and dollar stores. The closure of restaurants, movie theaters and sports stadiums weighed on the business, but not all of its drinks suffered.
Pepsi Zero Sugar and Bubly saw double-digit revenue growth.
PEP shares gathered 89 cents to $135.35.
