What drove PepsiCo's gross profit growth in Q3 2024?

PepsiCo's gross profit grew by 0.01% in Q3 2024, reaching $12.78 billion. Several factors contributed to this modest growth: 1. **International Business Strength**: PepsiCo's international business delivered significant volume growth and organic revenue growth of 5.5% year-over-year. This segment's performance reflects the company's successful expansion into emerging markets and its diversified product portfolio, which has allowed it to capitalize on consumer demand in various regions. 2. **Price Increases**: PepsiCo raised prices globally by 3%. This price elasticity was positive, as the company reported that Frito-Lay prices edged up by 0.5% in the quarter. This price increase contributed to maintaining revenue and gross profit margins. 3. **Cost Management**: The company implemented holistic cost-management initiatives, which helped protect the bottom line. Effective cost management likely played a role in maintaining gross profit margins despite softer revenue growth. In summary, PepsiCo's gross profit growth in Q3 2024 was driven by strong international performance, price increases, and effective cost management.