PepsiCo, Inc. (NASDAQ: PEP) announced financial results for the second quarter 2020. Earnings per share for the second quarter amounted to USD 1.18.
“I’m very pleased with the way our organization has protected our associates and served the needs of our customers, consumers and communities throughout these incredibly difficult times,” said PepsiCo Chairman and CEO, Ramon Laguarta. “Despite being faced with significant challenges and complexities as a result of the COVID-19 pandemic, our businesses performed relatively well during the quarter, with a notable level of resiliency in our global snacks and foods business. Encouragingly, as restrictions and closures eased and population mobility improved as the quarter progressed, we also saw an improvement in our business performance and channel mix dynamics. However, the environment has remained volatile and much uncertainty remains about the duration and long-term implications of the pandemic. 2 As a result, we are not providing a financial outlook for fiscal year 2020 at this time. However, we continue to believe we have ample liquidity and flexibility to meet the needs of our business and return cash to shareholders. We remain focused on winning in the marketplace with our strong portfolio of brands in attractive categories, agile supply chain and flexible go-to-market systems, while also building on our competitive advantages, to emerge an even stronger company in the future.”
The company has negated its previous financial outlook for fiscal year 2020 due to the coronavirus pandemic impact on its business. The company expects a core effective tax rate of 21%. This includes total cash returns to shareholders of USD 7.5 Billion. USD 5.5 Billion will be comprised of dividends and USD 2 Billion in share repurchases.