PepsiCo’s Q1’21 Revenue Up 6.8%, Reiterates 2021 Guidance

Source: Kowit Lanchu, Shutterstock


  • Organic revenue during the first quarter grew 2.4 percent year over year.
  • Net income rose to US$1.71 billion from US$1.34 billion.
  • PepsiCo anticipates 2021 organic revenue to grow in mid-single digits.

Snacks and beverage maker PepsiCo, Inc. (NASDAQ: PEP) posted strong earnings for the first quarter ended March. 31 and reiterated its outlook for the full year 2021.

The New York-based company owns a number of snacks and beverage brands including Gatorade, Tropicana, Aquafina, 7 Up, Lay's, Doritos, Quaker Foods and Starbucks.

PepsiCo scrips closed at US$142.31 on Thursday’s trading. The company has a market capitalization of US$196.39 billion on NASDAQ. The stock is down 3 percent year-to-date.

In 2020, the stock price grew over 8 percent. The stock hit a 52-week low of US$126.53 in June, while it rallied to US$148.77 in December 2020.

Here, we explore the company’s performance during the first quarter and forecast for 2021.

First quarter of 2021

PepsiCo posted a 6.8 percent growth in its net revenue for the first quarter to US$14.82 billion from US$13.88 billion in first quarter 2020. Organic revenue grew 2.4 percent year-over-year during the period.

Revenue from the company’s North American beverages segment totaled US$5.07 billion, up from US$4.84 billion. Frito-Lay North America unit’s net revenue also increased to US$4.24 billion from US$4.07 billion.

The company’s GAAP EPS jumped 29 percent to US$1.24 from 96 cents in the year-ago period. Net income rose to US$1.71 billion from US$1.34 billion.

Core non-GAAP net income during the quarter came in at US$1.68 billion, or US$1.21, compared to US$1.50 billion, or US$1.07.

Source: Refinitiv, PepsiCo quarterly revenue since 2019


2021 Guidance

PepsiCo did not update the guidance for the full year 2021, which it provided while announcing the results for the fourth quarter of 2020.

The company continues to expect its organic revenue to grow in mid-single digits during 2021. The earnings per share is anticipated to grow at high-single digits at constant currency.

PepsiCo projects the organic revenue growth to accelerate in the second quarter. The company believes that the pace of vaccination will pick up and population mobility will improve, which should benefit foodservice channel.

In 2020, PepsiCo saw its non-GAAP EPS grow 2 percent to US$5.52 while its organic revenue increased 4.3 percent. Net revenue during the year totaled US$70.37 billion.

The company also acquired energy drink maker Rockstar, which owned Mountain Dew brand, for US$3.85 billion last year.

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.