PepsiCo revenue falls 3% as pandemic hits beverage sales

PepsiCo revenue falls 3% as pandemic hits beverage sales

Pepsi soft drinks are displayed at a convenience store in San Francisco, California.

Justin Sullivan | Getty Images

PepsiCo on Monday reported that its quarterly revenue fell as fewer consumers bought its drinks at restaurants or convenience stores as a consequence of the coronavirus pandemic.

The company did report growth for its food items, such as Cheetos and oatmeal, in the quarter.

Shares of the company rose 3.3% in premarket trading.

Pepsi said that it would not be providing an outlook for fiscal 2020 at this time, citing the continued volatility and uncertainty surrounding the pandemic.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: $1.32, adjusted, vs. $1.25 expectedRevenue: $15.95 billion vs. $15.38 billion expected

Pepsi reported fiscal second-quarter net income of $1.65 billion, or $1.18 per share, down from $2.04 billion, or $1.44 per share, a year earlier. CEO Ramon Laguarta said that the company spent nearly $400 million on costs related to the pandemic, including personal protective equipment for employees.

Excluding items, the company earned $1.32 per share, beating the $1.25 per share expected by analysts surveyed by Refinitiv.

Net sales dropped 3.1% to $15.95 billion, topping expectations of $15.38 billion. The company's organic revenue,