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PepsiCo missed expectations for its fourth quarter sales this week after a surprise drop in revenue due to poor food sales in the US.

The company’s global sales fell 0.2% to $27.8bn for the 16 weeks to 28 December, missing estimates of $27.9bn. It marks the third-straight quarter of missed revenue forecasts.

Shares in the company fell 2% in pre-market trading.

The sales drop was led by a fall in volumes for the Quaker and Frito-Lay businesses in the US. Quaker is still recovering from a recall earlier in the year and saw volumes down 6% in the fourth quarter. Its revenue is down 14% for the full year.

PepsiCo said salty and savoury snack categories were underperforming broader packaged food following multiple years in which they outperformed it.

PepsiCo has tried to stimulate volume growth with widespread promotions as Americans spend less on snacks and soft drinks. “We expect our North America performance to gradually improve as the year progresses, and our commercial activities take hold,” said the company.

PepsiCo’s international business outside the US now makes up 40% of total sales and helped prop up the company’s revenue last year. International sales were up 6% in 2024 with food up 4% and beverages up 10%. This helped push PepsiCo’s sales up 0.4% to $91.9bn for the full year.

“Our businesses remained resilient in 2024 despite subdued category performance trends in North America,” said chairman and CEO Ramon Laguarta.

Europe remains a particular bright spot, with organic revenue up 7% due to a mix of price hikes and 2% volume growth. The UK delivered mid single-digit growth, the company said.

For 2025, Pepsi is projecting a low single-digit increase in its organic revenue and a mid single-digit increase in its core constant currency earnings per share.