PepsiCo has boosted its earnings forecast for the second consecutive quarter as consumer demand for drinks and snacks has helped it shake off concerns about inflation and the impact of the strengthening dollar.
The New York consumer group said it expects organic revenues to grow by 10% in 2022, compared to 8% it predicted three months ago and 6% that it overstated earlier this year.
CEO Ramon Laguerta said he was “pleased” with the recent results “as our business momentum continues despite continued macroeconomic and geopolitical volatility and higher levels of inflation in our markets”.
PepsiCo It reported a 5.2% jump in net revenue to more than $ 20.2 billion in the quarter to mid-June, surpassing the Wall Street forecast of $ 19.5 billion.
Sales volumes of snacks and beverages increased by 3% and 6% respectively during the quarter, corresponding to the rate of three months ago.
The growth in the company’s markets in Latin America, the Middle East, Africa and Asia Pacific has helped offset the contractions in its major markets in Europe and North America. The quantities of snacks and beverages in Europe decreased by 7% and 8%, respectively, compared to the previous year.
However, the impact of Russia’s war against Ukraine led to $ 1.4 billion before tax Impairment charge, Pushes net profit to $ 1.43 billion. Analysts surveyed by Refinitiv expected a net profit of about $ 2.4 billion, excluding these charges.
PepsiCo shares rose 0.4% in pre-market trading. With their closing at $ 170.47 on Monday, the shares were trading about 4% below the high recorded at the end of April following the company’s first quarter results.
PepsiCo boosts earnings outlook for second straight quarter Source link PepsiCo boosts earnings outlook for second straight quarter