PepsiCo is continuing to see an overall benefit from consumer shopping habits changed by the pandemic, as it reported healthy fourth-quarter results.
PepsiCo reported fourth quarter revenue up 8.8% year-over-year, to $22.46 billion. The results were buoyed by good results for its Frito-Lay unit, with organic revenue for Frito-Lay North America up 5%, as well as its Quaker Oats business. The company attributed both to consumers eating more at home during the pandemic, especially breakfast foods like oatmeal and pancakes. The North American beverage unit had a 5.5% year-over-year increase.
The only major dark spot was fountain sales, which were down by double digits, as consumers continued to avoid restaurants, movie theaters and other foodservice venues. Executives said they expect fountain sales to come back as the pandemic lifts.
“I think it’ll evolve slowly over time,” CFO Hugh Johnston told the Wall Street Journal. “I’m not expecting any kind of a dramatic change.”
PepsiCo’s diversified product portfolio helped it weather the pandemic better than chief rival Coca-Cola, which reported a 9% drop in organic sales last year.
