(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

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The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP

More than a dozen states and the District of Columbia filed complaints against TikTok on Tuesday, claiming that the popular short-form video app is damaging teenage mental health by creating its platform to be addicting to children.

The cases originate from a national TikTok investigation begun in March 2022 by a bipartisan coalition of state attorneys general, including New York, California, Kentucky, and New Jersey. All of the allegations were filed in state court.

At the center of each case is the TikTok algorithm, which determines what users view on the site by populating the app’s primary “For You” stream with content suited to their preferences. The claims also highlight design aspects that they claim cause children to become addicted to the platform, such as the ability to browse endlessly through information, push alerts with built-in “buzzes,” and face filters that create unrealistic appearances for users.

States Sue TikTok, Claiming Its Platform Is Addictive And Harms The Mental Health Of Children

In its pleadings, the District of Columbia referred to the algorithm as “dopamine-inducing,” and claimed it was designed to be purposely addictive so that the corporation could ensnare many young people into excessive use and keep them on its app for hours on end. TikTok engages in these actions while knowing that they will cause “profound psychological and physiological harms,” including anxiety, sadness, body dysmorphia, and other long-term issues, according to the lawsuit.

“It is profiting from the fact that it is addicting young people to its platform,” District of Columbia Attorney General Brian Schwalb stated in an interview.

“We strongly disagree with many of these allegations, which we believe are false and misleading. In response to the lawsuits, TikTok spokesman Alex Haurek stated, “We are proud of and remain deeply committed to the work we’ve done to protect teens, and we will continue to update and improve our product.” “We’ve endeavored to work with the Attorneys General for over two years, and it is incredibly disappointing they have taken this step rather than work with us on constructive solutions to industrywide challenges.”

The social networking company does not let minors under the age of 13 sign up for its main service, and some content is restricted to anyone under the age of 18. Despite the company’s assertions that its platform is safe for children, Washington and several other states stated in their petition that children may simply bypass those limits, allowing them to access the services that adults use.

“TikTok claims to be safe for young people, however this is far from accurate. In New York and across the country, young people have died or been injured while participating in deadly TikTok challenges, and many more are feeling sad, frightened, and depressed as a result of TikTok’s addictive elements,” New York Attorney General Letitia James said in a statement.

Their complaint also targets other aspects of the company’s business.

The district claims TikTok is functioning as a “unlicensed virtual economy” by allowing users to buy TikTok Coins, a virtual currency within the platform, and send “Gifts” to TikTok LIVE streamers, who can then cash out for real money. TikTok charges a 50% commission on these financial transactions but has not registered as a money transmitter with the United States Treasury Department or district authorities, according to the complaint.

Officials claim that minors are routinely exploited for sexually explicit content via TikTok’s LIVE streaming feature, which has enabled the app to function essentially as a “virtual strip club” with no age limitations. They argue that the cut the corporation receives from financial transactions allows it to benefit from exploitation.

The 14 attorneys general say their lawsuits aim to stop TikTok from employing these features, impose financial penalties for suspected illegal actions, and recover damages for aggrieved users.

Many states have filed lawsuits against TikTok and other internet companies in recent years, as concern rises over prominent social media platforms and their ever-increasing impact on young people’s lives. In some cases, the challenges were coordinated in a manner similar to how states had organized against the tobacco and pharmaceutical companies.

States Sue TikTok, Claiming Its Platform Is Addictive And Harms The Mental Health Of Children

Last week, Texas Attorney General Ken Paxton filed a lawsuit against TikTok, alleging that the firm shared and sold children’s personal information in violation of a new state law that bars such operations. TikTok, which denies the charges, is simultaneously battling a similar data-related federal case launched in August by the Department of Justice.

Several Republican-led states, including Nebraska, Kansas, New Hampshire, Kansas, Iowa, and Arkansas, have previously sued the company, some unsuccessfully, over claims that it harms children’s mental health, exposes them to “inappropriate” content, or allows young people to be sexually exploited on its platform. Arkansas has filed a lawsuit against YouTube and Meta Platforms, the parent company of Facebook and Instagram, which is being sued by dozens of states on allegations that it is damaging young people’s mental health. New York City and certain public school districts have filed their own cases.

TikTok, in particular, is encountering additional hurdles at the national level. According to a federal rule that went into force earlier this year, TikTok might be outlawed in the United States by mid-January if its Chinese parent firm ByteDance does not sell the site by that time.

TikTok and ByteDance are both appealing the statute in Washington’s appeals court. A panel of three justices heard oral arguments in the case last month and is anticipated to announce a decision that might be appealed to the US Supreme Court.

SOURCE | AP