PepsiCo Inc beat analysts' estimates for quarterly revenue and profit, helped by a surge in demand for snacks including Fritos and Cheetos during lockdowns triggered by the COVID-19 pandemic.
Consumers stocked up on snacks, from potato chips to dips, as many were forced to work from home and students attended classes online to curb the spread of the virus.
Sales of snacks under the Frito-Lay North America unit rose 7% in the second quarter.
However, revenue at PepsiCo's North America beverages unit fell 7% as restaurants and vending machines remained closed, while sporting events were delayed.
Revenue in the company's Latin America business tumbled 17% as coronavirus cases in the region rose.
Improvement In Trends
Chief executive officer, Ramon Laguarta, signalled an improvement in trends as the quarter progressed due to the easing of restrictions.
Overall, net revenue fell about 3% to $15.95 billion, but beat analysts' estimates of $15.38 billion, according to IBES data from Refinitiv.
Net income attributable to the company fell to $1.65 billion, or $1.18 per share, in the three months ended 13 June, from $2.04 billion, or $1.44 per share, a year earlier.
Excluding one-time items, the company earned $1.32 per share, beating Wall Street estimates of $1.25.