PepsiCo sales have rallied after a difficult start to the year, with its European division achieving the fastest growth.
Organic sales growth hit 2.1% worldwide in the quarter, buoyed by positive momentum in the snack and drink giant’s international trade. Growth steadily gained pace over the quarter despite subdued volumes, with snacks down 1.5% overall and beverages remaining at a standstill.
And while the giant’s EMEA division powered ahead with 7% organic sales growth, the progress was largely down to price increases with volumes up for the division by just 1% in the 12 weeks to 14 June, according to an update for investors.
PepsiCo continued to struggle in its domestic North American market as volumes fell 1% in the food division and 2% in drinks.
Accounting for a difficult start to the year – which in Q1 included PepsiCo’s first missed quarterly earnings forecast in at least five years – the company has now brought net sales growth to 1% in the quarter, helping push its full-year figure to a smaller contraction of just 0.3%.
Net revenues for the quarter were $22.7bn, compared with $22.5bn in Q2 2024, with revenue in the 24 weeks to 14 June standing at $40.6bn.
Once adjusted to exclude restructuring and impairment charges and other items, earnings per share (EPS) in the quarter came in at $2.12, a better-than-expected result despite a 5% slip.
The company now expected a low-single-digit increase in organic revenue for the year, with adjusted EPS roughly even with 2024.
“We’re encouraged by the acceleration in our net revenue growth versus the previous quarter with our businesses effectively navigating through a challenging environment,” said CEO Ramon Laguarta.
“Our international business momentum continued, while our North America businesses improved their execution and competitiveness in key subcategories and channels.
“As we look ahead, we will continue to build upon the successful expansion and growth of our international business and accelerate initiatives to improve our North America business performance. These initiatives include more portfolio innovation and cost optimisation activities that aim to stimulate growth and profitability.”
Shares in PepsiCo leaped to their highest level in several months following the announcement, jumping 6.25% to $142.70.
PepsiCo spent $3.1bn net on acquisitions in H1 2025, including the $1.95bn purchase by its North American beverage division of trend-setting prebiotic soda Poppi, which has continued to grow at a double-digit pace.
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