PepsiCo reported good results for the quarter and raised its forecasts for the year
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At the end of the third quarter revenue PepsiCo grew 9% year-over-year to $21.97 billion, with earnings per share of $1.97 and organic revenue growth of 16%. All of these figures exceeded the expectations of Wall Street analysts polled Bloomberg.
The increase in revenue is also due to an increase in prices for the company’s products, which averaged 17%. At the same time, as noted in the company, prices rose still less than the cost of raw materials. In addition, according to PepsiCo CFO Hugh Johnston, consumers reacted positively to the price increase. “I think consumers are very cautious about spending money on big purchases like houses, cars and technology right now. In good times, people enjoy our products, and in bad times, we are the little pleasure they have,” said Mr. Johnston.
The company’s profit for the quarter amounted to $2.7 billion, or $1.95 per share. A year earlier, it was $2.22 billion, or $1.6 per share. Among individual divisions of PepsiCo, Frito-Lay North America, which sells Doritos and Lays chips among other things, grew the most revenue by 20% to $5.56 billion.
Based on the results, PepsiCo management raised its forecasts for the entire fiscal year. The company now expects organic revenue growth of 12% (previously expected 10%) and earnings per share of 10% (previously expected 8%). Shares of PepsiCo on the NASDAQ exchange reacted with an increase of 4.5%.
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