This Tuesday, American beverage and snack company PepsiCo Inc. announced in its latest quarterly report that it beat its full-year forecasts, despite rising prices for their products.
The report clarifies that Average PepsiCo prices up 16% while organic volume fell 2%. Strong demand saw the stock up 2% higher than its main competitor, Coca Cola.
According to the company, net income increased 10% to $17.85 billion in the first quarter, despite Commodity and consumer goods companies continue to struggle with inflation in food, manufacturing and delivery.
PepsiCo CFO Hugh Johnston said:we do not expect raw material prices to drop for us, It’s just that the inflation rate will slow down a bit during the year,” he told Reuters.
However, PepsiCo’s sales in the North American beverages division, which houses 7UP and Gatorade, also rose 8% in the quarter. According to Markus Hansen, Portfolio Manager at Vontobel Quality Growth, this year the company has “very deep confidence in what’s going on in the snack business as well as improvements in the beverage industry.”
By 2023, the company expects organic revenue to grow by 8% and annual earnings per share of $7.27.
Source: La Opinion
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