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(Reuters) – PepsiCo raised its annual profit forecast on Tuesday for the third time this year, as the company banks on multiple price increases rolled out in its main markets and resilient demand for its snacks and drinks.
PepsiCo is now targeting earnings per share of $7.54 (7.11 euros) for the 2023 financial year, compared to a previous forecast of $7.47. The organic revenue growth forecast for 2023 remains at 10%.
PepsiCo shares rose 2% in pre-market trading in the United States.
PepsiCo and its rival Coca-Cola have been protected from the effects of inflation thanks to their near monopoly on the global soft drinks market, and the tendency of consumers to opt for products considered “affordable luxury” when they monitor their spending.
PepsiCo also benefited from its large food business, including the Doritos and Cheetos potato chip brands.
Average prices for the company’s products rose 11% in the third quarter that ended September 9, while organic volume fell 2.5%. The average price increase was 16% during the first quarter of the year.
(Writing by Ananya Mariam Rajesh in Bangalore; French version Victor Goury-Laffont, editing by Kate Entringer)
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