PepsiCo has today raised its annual revenue and profit forecasts for the second time this year after seeing resilient demand for its snacks and beverages despite price increases to counter higher costs.
In its second quarter ended 17 June, organic revenues rose 13%, boosted by an average 15% increase in prices across its various divisions. Volumes were impacted slightly, down 2.5%.
Net revenue at PepsiCo’s core North America beverages unit rose 10%, but volumes slipped 4%, suggesting that some consumers were becoming mindful about spending on soft drinks.
Organic revenue in the company’s Frito-Lay North America unit rose 14% (-0.5% volume) and Quaker Foods saw a 2% increase (-5% volumes). Europe was the best-performing in revenue terms, up 19%, and volumes only slipped only 1% despite the squeeze on budgets from soaring inflation.
The company said it now expects 2023 organic revenue to rise 10%, compared with a prior forecast of an 8% increase. Meanwhile, annual core earnings per share is expected to be $7.47, compared with an earlier forecast of $7.27.
“We are very pleased with our performance for the second quarter as our business momentum remains strong,” said Chairman and CEO Ramon Laguarta.
“Our strong performance and the progress we are making on our strategic priorities give us confidence that the investments we are making to become an even Faster, even Stronger, and even Better organization by Winning with pep+ are working. Moving forward, we will look to elevate our focus on productivity initiatives to further support investments in innovation, brand building, digitalization, and sustainability to win in the marketplace and fortify our businesses for the long-term.”
