(Reuters) – PepsiCo Inc raised its full-year revenue and profit forecast on Wednesday, largely on the back of product price increases the group made to cushion the impact of rising costs.
The action of the American maker of sodas and snacks, which also published a turnover above expectations for the third quarter, rose 2.3% in pre-market trading.
The quasi-duopoly of Coca-Cola and PepsiCo in the sugary soft drink market has allowed PepsiCo to raise its prices without too much reaction from consumers.
These price increases have enabled the company to increase its revenues in all segments, particularly in its two largest divisions, namely beverages in North America and Frito-Lay, which markets snack foods under the brands Doritos and Cheetos.
The beverage division, which includes brands such as Mirinda, 7UP and Gatorade, saw a 1% increase in volume.
PepsiCo says it now expects organic revenue to rise 12% in 2022, up from 10% previously.
The group also expects earnings per share at constant exchange rates of around 6.73 dollars (6.93 euros) for the 2022 financial year, against a previous forecast of 6.63 dollars.
The company’s net revenue rose about 9% to $21.97 billion in the third quarter ended Sept. 3, beating analysts’ estimates of $20.84 billion, according to consensus. IBES by Refinitive.
(Report Ananya Mariam Rajesh in Bangalore; French version Alizée Degorce, edited by Jean-Stéphane Brosse)
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