July 12 (Reuters) – PepsiCo raised its full-year revenue forecast on Tuesday amid sustained demand for its sodas and other snacks, despite rising prices.
The title of the group progressed by approximately 1.3% to 172.70 dollars (172.37 euros) in the exchanges before the Stock Exchange.
Packaged food makers have so far felt little impact from inflation on demand, especially in the United States, where consumers prefer to spend on meals on wheels rather than dining out.
The ceiling for the price increase may have been reached, however, with some traders now opposing price hikes by food companies.
Earlier this year, PepsiCo’s snack brands temporarily disappeared from the shelves of Canadian retailer Loblaw Cos after the two companies clashed over price increases.
That, however, had little effect on PepsiCo’s overall second-quarter net revenue, which jumped 5.2% to $20.23 billion, beating analysts’ estimates. were expecting 19.51 billion, according to IBES data from Refinitiv.
Revenue from its Frito-Lay North America unit grew 14% organically over the same period, with its snack brands Doritos, Cheetos and Ruffles each posting double-digit growth in net income .
PepsiCo’s beverage business in North America, for its part, saw its turnover increase by 9%.
The group’s attributable net profit, however, fell nearly 40% to $1.43 billion in the second quarter, as the group recorded a charge of $1.4 billion mainly related to the impairment of certain assets arising from the conflict between Russia and Ukraine.
“The decline in core operating income also reflects increased inflationary pressures on raw material, labor, transportation and supply chain costs,” PepsiCo executives said.
On an adjusted basis, the company earned $1.86 per share, versus estimates of $1.74 per share.
For fiscal 2022, PepsiCo said it expects organic revenue growth of 10%, versus a previous forecast of 8%. (1 euro = $1.0019) (Report Uday Sampath in Bangalore; French version Dagmarah Mackos)