The Pepsi Q3 results were announced this morning in a somewhat poignant marking of CEO Indra Nooyi’s last day as company lead.
But the CEO is leaving on a high, as the Pepsi Q3 results beat analysts’ expectations.
Pepsi Q3 results
PepsiCo (NASDAQ:PEP) beat analyst estimates.
The company reported a third-quarter net income of $2.49 billion or $1.75 per share. These figures mark a 16% increase from the same period last year where net revenue was $2.14 billion.
Net sales for 2018 have risen 1.5% to $16.49 billion. Analysts expected closer to $16.36 billion.
Moving forward, PepsiCo has said it it is “doubling-down on marketing spend for its Gatorade, Peps, and Mountain Dew brands.”
The market hasn’t opened yet, but it will be interesting to see if stocks rise off the back of the positive Pepsi Q3 results, or fall due to the loss of its powerful CEO.
Indra Nooyi Steps Down
Today is also Indra Nooyi’s final day as the CEO of Pepsi. She held the role for 12 years.
Under her guidance, the company has seen exponential growth, with stocks more than doubling in the last ten years.
Earlier in 2018, Nooyi was preparing the company for the ever-growing demand for healthier food and drink options. To stay relevant, Pepsi bought Bare Foods, seeking to add a line of healthier snacks to its portfolio. This was, arguably, to balance out falling fizzy-drinks sales across North America.
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Pepsi Q3 Results Helped by SodaStream?
The company also recently acquired Israeli carbonated drink maker SodaStream. SodaStream is a device that allows the user to make carbonated drinks at home. These are far healthier than traditional sugary soda drinks as the fizz from the SodaStream is created by gas and not sugar.
In a bid to bring Pepsi into the home, the company acquired SodaStream in August in a deal estimated at $3.2 billion.
However, Nooyi’s resignation sparked rumors that the company might split its beverage and snack business. This has been something the CEO has strongly resisted.
Were you surprised at the Pepsi Q3 results? Let us know below!
Featured Image: depositphotos/Mactrunk
