PepsiCo Inc recently raised its annual revenue and profit forecasts for the second time, banking on resilient demand for its snacks and beverages as well as price hikes.
On the 25 April, the company announced that it had raised its annual sales and profit forecasts after beating first-quarter revenue estimates on the back of steady demand for its products, as well as price hikes undertaken to offset rising costs.
Shares rose 2% in pre-market trading after the company also beat second-quarter results.
Packaged food companies, including PepsiCo, have hiked prices to counter a jump in costs of everything from commodities such as sugar to transportation costs caused by supply chain snags and the Russia-Ukraine war.
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In April, the Pepsi owner said that it would raise prices in some regions still experiencing higher inflation.
PepsiCo's average prices jumped 15% for the quarter ended 17 June, while organic volume slipped 2.5%.
The company said it expects 2023 organic revenue to rise 10%, compared with prior forecast of an 8% increase.
It estimated annual core earnings per share of $7.47, compared with earlier expectation of $7.27.
The 7-UP maker's net revenue rose to $22.32 billion from $20.23 billion in the second quarter, compared with analysts' average estimate of $21.73 billion, according to Refinitiv data.