Q4 revenue falls 0.5 to 27.85 bln
Core EPS of 1.78 tops est. of 1.72
Sees 2024 organic growth of at least 4 vs 9.5 in 2023

Feb 9 Reuters PepsiCo on Friday reported a surprise drop in quarterly sales and forecast a sharp slowdown in organic revenue growth for 2024 as multiple price hikes weigh on demand for its beverages and chips, sending its shares down as much as 4.

The company said demand has started to wane mainly in the U.S., where consumers are balking at higher prices for sodas and snacks after two years of PepsiCo passing on higher production costs to customers to shield its margins.

We are seeing a bit of a slowdown in the U.S., CEO Ramon Laguarta said on a postearnings call. Both food and beverages slowed in the fourth quarter, he said, in part due to pricing and tightening household budgets.

In January, Carrefour, Europe39;s largest food retailer, asserted it would not be stocking PepsiCo39;s brands due to unacceptable price increases.

PepsiCo39;s fourthquarter revenue fell 0.5 to 27.85 billion, the first drop in 14 quarters. Analysts had expected a 1.4 rise to 28.40 billion, according to LSEG data.

Everybody had high expectations with PepsiCo39;s performance so far, said Don Nesbitt, portfolio manager at ZCM, which holds an about 1 stake in the Doritos maker.

We knew that they weren39;t going to be able to push through as much pricing as they have in the past.

The soda and snacks giant forecast annual organic revenue growth of at least 4,…