Business Desk

PepsiCo posted better-than-expected earnings and revenue for the second quarter and expressed optimism about reviving sluggish North American sales with a range of high-protein snacks and reformulated products in the coming months.

In a call with investors on Thursday, Chairman and CEO Ramon Laguarta said the company plans to roll out protein-enhanced versions of snacks such as Pop Corners and expand to high-protein versions of other best-selling items. New protein beverages are also expected later this year.

“Consumers are embracing protein in their diets at a pace we haven’t seen before,” Laguarta said. “We aim to deliver accessible, scalable solutions.”

PepsiCo also plans to relaunch Lay’s and Tostitos chips without artificial colors or ingredients in the U.S. later this year, following calls by U.S. health officials to eliminate synthetic additives from food products.

However, Laguarta did not confirm whether PepsiCo will replace high-fructose corn syrup with real sugar in its U.S. beverages, after President Donald Trump claimed Coca-Cola had agreed to do so. “We follow the consumer,” Laguarta said, adding that PepsiCo will continue to adapt to preferences for natural ingredients.

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Despite overall gains, PepsiCo reported a 1% decline in North American snack sales and a 2% dip in beverage sales for the April-June period, attributed to years of price hikes and changing consumer habits. To counter perceptions of high prices, the company is expanding distribution of affordable brands like Chester’s and Santitas.

Global sales rose modestly, driven by Latin America and Asia, with strong performance from low- and no-sugar Pepsi variants.

PepsiCo’s revenue increased to $22.7 billion, exceeding analysts’ forecast of $22.3 billion. Adjusted earnings stood at $2.12 per share, also above expectations. However, net income fell 59% to $1.3 billion due to impairment charges on its Rockstar and Be & Cheery brands.

Shares rose nearly 6% Thursday morning following the results. PepsiCo reaffirmed its lower full-year earnings outlook, citing ongoing tariff pressures and cautious consumer spending. Tariff costs have increased further after the Trump administration raised aluminum import duties to 50% in June.

Source: Agency