Overview

• PepsiCo now expects a 3% decline in core earnings per share for 2025, revising its earlier forecast of mid-single-digit growth.
• Procter & Gamble projects flat net sales for fiscal 2025, down from its previous expectation of 2% to 4% growth.
• Both companies are implementing mitigation strategies, including price increases and sourcing adjustments, to manage higher costs.
• Consumer behavior is shifting, with P&G reporting reduced laundry loads and PepsiCo noting weaker snack and beverage volumes.
• U.S. tariffs on raw materials like aluminum and steel, coupled with economic uncertainty, are driving up production costs and impacting demand.