Pepsico, the maker of Pepsi, expects that US President Donald Trump’s import duties will drive up costs in the supply chain.
The soft drink and snack producer, also behind brands such as 7Up and Lay’s, also expects to continue to suffer from cautious consumer spending.
“Looking ahead, we expect more volatility and uncertainty, especially about developments in global trade, which we believe will increase our costs in the supply chain,” said CEO Ramon Laguarta of the American company during the quarterly figures.
PepsiCo wants to address these higher costs where possible and tries to disrupt customer relationships “as little as possible”.
PepsiCo’s revenue fell 1.8 percent in the first quarter from the same period a year earlier, to $17.9 billion. Net profit fell to just over $1.8 billion, from just over $2 billion a year earlier.