📈 PepsiCo's coming turnaround?
PepsiCo $PEP one of the best known and most important players in the food and beverage industry reported quarterly results that beat Wall Street estimates . Overall sales are stagnant or down slightly, but the company is proving it can adapt.

The important numbers:
Earnings per share came in at $2.12 versus expectations of $2.03
Revenue: $22.73 billion vs. $22.27 billion expected.
Organic revenue growth: +2.1%

Shares respond by rising more than 6%, but still more than 25% below peak!

While the raw numbers look decent at first glance, the year-over-year drop in net income to 92 cents per share (from $2.23 last year). due to one-time costs indicates that something more important is going on under the surface.

🔍 What's the plan for a return to growth?
Restructuring and cost cutting
Closing two manufacturing plants, reviewing logistics and distribution, making better use of marketing budget. Aim to increase operating margins and return on capital.

New product strategies
Company relies on growth in demand for: healthier snacks (e.g. Siete Foods, Sabra), functional foods with protein, stronger positioning of brands such as Pepsi Zero Sugar, which posted double-digit sales growth.

CEO Ramon Laguarta believes the new strategy will enable the company to achieve the lower end of its organic growth target in the coming quarters 4-6 %. He stressed that the domestic market is showing signs of stabilisation, and believes in a return to a positive trend.

PepsiCo thus confirms that even strong brands need a reboot from time to time, and we are at the beginning of this process right now. The company still has strong cashflow, a global presence and the ability to respond to changes in consumer behaviour, so all is not lost!

Are you Team Pepsi or are you more like Team Coca-Cola? What is your opinion of the company?