PepsiCo reports better than expected thanks to multiple price hikes last year
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US PepsiCo’s fourth-quarter 2022 revenue and net profit were better than analysts’ forecasts due to a significant increase in product prices. So, the company’s revenue, according to reportamounted to almost $28 billion, while analysts polled by Refinitiv expected that this figure would be equal to $26.84 billion.
Compared to last year, revenue increased by 10.9%, while the volume of goods sold decreased by 2%. This is because PepsiCo raised the prices of its products several times during 2022. Only in the fourth quarter of the year prices for the company’s products increased by an average of 16%. On Thursday, the company vowed to phase out the practice in 2023 as “most of the planned price increases have already been made.”
The company’s net profit for the quarter collapsed by 60% – from $1.32 billion to $518 million, or $0.37 per share. However, this is largely due to the departure of PepsiCo from Russia, the sale of the juice production business, as well as the phasing out of a number of brands. Excluding all of these write-offs, the company’s net income was $1.67 per share, better than forecasts of $1.65.
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