PepsiCo cut its annual core profit forecast on Thursday, as the soda and snacks giant grapples with the uncertainty fueled by President Donald Trump’s erratic trade policy and disruptions to its supply chain.

The company now expects fiscal 2025 core earnings per share to decline 3%, compared with its previous forecast of a low-single-digit increase.

"As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs. At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook," said CEO Ramon Laguarta said in a statement.

Organic volumes declined 3% in the first quarter in its convenient foods segment, the company said, as promotions on snacks take longer to boost demand.