PepsiCo, Inc. (PEP) CEO Ramon Laguarta on Q1 2022 Results - Earnings Call Transcript

PepsiCo, Inc. (NASDAQ:PEP) Q1 2022 Earnings Conference Call April 26, 2022 8:15 AM ET

Company Participants

Ravi Pamnani - SVP, IR

Hugh Johnston - Vice Chairman, Executive VP & CFO

Ramon Laguarta - Chairman & CEO

Conference Call Participants

Bryan Spillane - Bank of America Merrill Lynch

Dara Mohsenian - Morgan Stanley

Lauren Lieberman - Barclays Bank

Bonnie Herzog - Goldman Sachs Group

Andrea Teixeira - JPMorgan Chase & Co.

Laurent Grandet - Guggenheim Securities

Vivien Azer - Cowen and Company

Kaumil Gajrawala - Crédit Suisse

Kevin Grundy - Jefferies

Robert Ottenstein - Evercore ISI

Steve Powers - Deutsche Bank

Filippo Falorni - RBC Capital Markets

Brett Cooper - Consumer Edge Research

Christopher Carey - Wells Fargo Securities

Operator

Good morning, and welcome to PepsiCo's 2022 First 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 2022 guidance. Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, April 26, 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 first quarter 2022 earnings release and first 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. [Operator Instructions].

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 Bryan Spillane with Bank of America.

Bryan Spillane

I wanted to ask about margins. And I guess on the last earnings call, I think the expectation was that margins would be intact. And I guess now with today's guidance, it implies maybe a step back in margins. So maybe, Hugh, could you talk a little bit about maybe how that's changed, where we stand now in terms of like net inflation as we exit the first quarter? And then what are some of the actions that you're taking, maybe besides pricing, to try to protect margins?