PepsiCo reported a decent result in the quarter as the business momentum continued in spite of ongoing geopolitical and macroeconomic volatility and greater levels of inflation over the markets. The company delivered an all-aroubd beat driven by organic revenue growth of double digits in the quarter. It has recently launched two innovative variants of Rockstar Recovery to its existing portfolio but has added ingredients which include Vitamin C and collagen. The management has been actively carrying out various restructuring initiatives and recently announced an investment of $550 million in Celsius Holdings, the energy drink maker, as part of a long-term distribution deal with the smaller company. It also agreed to sell a clasp of biscuit assets to local manufacturer Camil Alimentos in Brazil. The company has raised its revenue outlook, with consumers paying more for its Gatorade and Doritos chips. The food and beverage giant saw a great hit from the war between Russia and Ukraine. The company’s margins shrank during the quarter because it faced higher commodities and freight. The company is accelerating its initiatives of cost management and is utilizing “mix and assortment solutions” such as small quantities for its assortment packs. It also plans to keep the product prices shrinking and deploy various ways of managing rising expenses. We provide the stock of PepsiCo with a ‘Hold’ rating with a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
Want unlimited access to our reports? Purchase our $99 annual subscription!