PepsiCo fears a 'volatile, uncertain' year ahead as trade tensions dent 2025 forecast

The CEO said PepsiCo is planning 'mitigation actions' to address 'higher supply chain costs' where possible, while trying to minimize disruption to operations.

PepsiCo, the American snack and beverages multinational, fears the year ahead offers 'more volatility and uncertainty', prompting the company to cut its revenue forecast to 'low-single-digit increase' for 2025, following a mixed quarterly performance.

The March quarter Earnings Per Share fell 10 percent, along with a 1.8 percent drop in its net revenue, weighed down a drop in beverages volume growth in North America and the EMEA region. PepsiCo Foods North America saw a drop in both revenue as well as volume growth for the first quarter, hinting at lower demand in America as costs rise.

"As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs. At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook,” Chairman and CEO Ramon Laguarta said.

The CEO said PepsiCo is planning 'mitigation actions' to address 'higher supply chain costs' where possible, while trying to minimize disruption to operations. The company also plans to take steps to 'improve performance in North America'.

"Consumers have remained value‐conscious across brands and channels as the cumulative impacts of inflationary pressures have strained budgets and altered food shopping patterns," the CEO and CFO said in a statement after the earnings.