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The
company's shares, which are down 1.6% to date in a tumultuous
year for Wall Street, were up about 2% before the bell as
investors shrugged off a fall in sales of its sodas due to
widespread restaurant closures.
"Consumer eating habits continued to evolve, with consumers
spending more time at home, which benefits the at-home
breakfast, snacking and dinner occasions," Chief Executive
Officer Ramon Laguarta said in pre-recorded remarks.
"We gained market share in salty, savory and macro-snacks in the
quarter."
Online sales of potato chips jumped 93.5% and tortilla chips
101.2% for the week ended June 20, according to market data from
Nielsen.
For PepsiCo, sales of snacks under the Frito-Lay North America
unit rose 7% in the second quarter ended June 13, while Quaker
Oats surged 23%.
Revenue at PepsiCo's North America beverages unit, its biggest,
fell 7% as restaurants and other points of sale remained closed,
while sporting events were delayed.
Laguarta signaled an improvement in convenience stores and gas
stations, but expects the recovery in foodservice channels,
which include restaurants, to take a bit more time.
The company sees snacks and food businesses remaining resilient,
with the beverages unit expected to perform better during the
second half of the year.
Overall, net revenue fell about 3% to $15.95 billion, but beat
analysts' estimates of $15.38 billion, according to IBES data
from Refinitiv.
Net income attributable to the company fell about 19% to $1.65
billion.
Excluding items, the company earned $1.32 per share, beating
Wall Street estimates of $1.25.
(Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj
Kalluvila)
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