PepsiCo tops quarterly revenue estimates as price cuts drive demand

The company posted first-quarter revenue of $19.44 billion, up 8.5% year-on-year, beating analyst estimates of $18.94 billion, according to LSEG data. It also maintained its full-year financial targets, News.Az reports, citing Reuters.

PepsiCo said recent price reductions on products such as Lay’s, Doritos, and Cheetos helped boost volumes in its North America foods division, reversing a decline seen in previous quarters.

The company has also been expanding its beverage portfolio, including energy drinks and prebiotic sodas, while adjusting product offerings and streamlining operations to reduce costs.

In February, PepsiCo cut prices on several major snack brands by up to 15% in an effort to regain shelf space and respond to shifting consumer spending habits.

Despite ongoing pressure from cost-conscious shoppers, the company said demand trends are improving in its core North American market.