PepsiCo reported quarterly earnings and revenue that topped analysts’ expectations, as the company projected that weak North American demand will rebound as strategy changes take hold.
Pepsi reported second-quarter net income attributable to the company of $1.26 billion, or 92 cents per share, down from $3.08 billion, or $2.23 per share, a year earlier.

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Excluding restructuring and impairment charges and other items, the company earned $2.12 per share.
Net sales rose 1% to $22.73 billion. Pepsi’s organic revenue, which excludes acquisitions, divestitures and foreign currency, increased 2.1% during the quarter.
But the company is still seeing softer demand for its products. Pepsi’s worldwide volume fell 1.5% for its food and was flat for its drinks.

Pepsi’s domestic drinks segment reported that its volume fell 2% in the quarter, although its namesake soda was one bright spot. Executives said in prepared remarks that volume for Pepsi rose during the quarter, and Pepsi Zero Sugar saw double-digit volume growth.

The company added it is evaluating how it spends its marketing dollars to make sure it is getting the best return on its investment. And Pepsi is also looking for any overlap between its North American food and beverage businesses to cut down on duplication and better integrate the two divisions.
Pepsi reiterated its full-year outlook. It still expects its core constant currency earnings per share to be roughly unchanged from the prior year and organic revenue to grow by a low single-digit percentage.