PepsiCo, Inc. (PEP) Q3 2022 Earnings Call Transcript

PepsiCo, Inc. (NASDAQ:PEP) Q3 2022 Results Conference Call October 12, 2022 8:15 AM ET

Company Participants

Ravi Pamnani - SVP, IR

Ramon Laguarta - Chairman & CEO

Hugh Johnston - Vice Chairman & CFO

Conference Call Participants

Andrew Teixeira - JPMorgan

Lauren Lieberman - Barclays

Dara Mohsenian - Morgan Stanley

Bonnie Herzog - Goldman Sachs

Kevin Grundy - Jefferies

Stephen Powers - Deutsche Bank

Robert Ottenstein - Evercore ISI

Kaumil Gajrawala - Credit Suisse

Chris Carey - Wells Fargo

Peter Grom - UBS

Operator

Good morning, and welcome to PepsiCo's 2022 Third Quarter Earnings Question-and-Answer session. [Operator Instructions] Today's call is being recorded and will be archived at www.pepsico.com.

It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President of Investor Relations. Mr. Pamnani, you may begin.

Ravi Pamnani

Thank you, operator. I hope everyone has had a chance this morning to review our press release and prepared remarks both of which are available on our website.

Before we begin, please take note of our cautionary statement. We may make forward-looking statements on today's call, including about our business plans and our updated 2022 guidance.

Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, October 12, 2022, and we are under no obligation to update. When discussing our results, we refer to non-GAAP measures, which exclude certain items from reported results.

Please refer to our third quarter 2022 earnings release and our third quarter 2022 Form 10-Q available on pepsico.com for definitions and reconciliations of non-GAAP measures and additional information regarding our results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements.

Joining me today are PepsiCo's Chairman and CEO, Ramon Laguarta; and PepsiCo's Vice Chairman and CFO, Hugh Johnston. We ask that you please limit yourself to one question.

And with that, I will turn it over to the operator for the first question.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question comes from Andrew Teixeira with JPMorgan. Your lines is open.

Andrea Teixeira

Good morning and congrats on the results. I was hoping to get more clarity on both the price elasticity and the reinvestments you called out. We all appreciate that you're conservative but it seems that you're embedding a 7% organic growth for the fourth quarter. And given the high single-digit pricing, are you expecting volumes to be negative in the range of 2% or 3% against the 1% negative that you got in the Q3? And then if I may, I can, I want to ask a cash flow question.