PepsiCo fell short of Wall Street estimates for fourth-quarter revenue and forecast weak organic growth for 2024 as the soft drinks and snacks giant's multiple price hikes crimp demand for its juices and Lay's crisps.
The company said its net revenue fell to $27.85 billion in the quarter from $28 billion a year earlier, while analysts on average had estimated $28.40 billion, according to LSEG data.
PepsiCo and other retailers are now facing some resistance to the multiple price hikes undertaken since the pandemic to fend off higher costs caused by supply chain disruptions.
Carrefour, Europe's largest food retailer, in January asserted it would not be stocking PepsiCo's brands "due to unacceptable price increases".
PepsiCo's average prices jumped 9% for the quarter ended December 30, while organic volume slipped 4%.
"Category growth rates are normalising as consumer behaviours largely revert to pre-pandemic norms and net revenue realisation moderates as inflationary pressures are expected to abate," CEO Ramon Laguarta said in a statement.
The company also forecast annual organic revenue growth of at least 4% compared to the 9.5% growth reported for fiscal 2023.
PepsiCo expects fiscal 2024 core earnings per share of $8.15, compared to analysts' expectations of $8.14.
