(Reuters) – PepsiCo raised its full-year revenue and profit forecast for the second time on Thursday, as the U.S. soda and snacks maker predicted buoyant demand and price increases.
Processed food companies, including PepsiCo, have raised prices to cushion the impact of rising costs, from raw materials like sugar to transportation costs related to supply chain issues. supplies and the war between Russia and Ukraine.
American consumers continued to buy sodas and snacks produced by Pepsi and rival Coca-Cola, despite rising interest rates and food prices that weighed on non-essential household spending.
In April, the maker of Lay’s and Doritos crisps said it would raise prices in some areas where inflation was even higher.
PepsiCo’s average prices rose 15% in the quarter to June 17, while organic volume fell 2.5%.
The company says it expects organic revenue to grow 10% in 2023 from an 8% increase previously forecast.
Annual earnings per share are expected to be $7.47, versus $7.27 previously forecast.
PepsiCo posted second-quarter net sales of $22.32 billion (€19.99 billion), while analysts had expected an average of $21.73 billion, according to data from Refinitiv.
The action rose 2% in pre-market trading.
(Report Ananya Mariam Rajesh in Bangalore; Diana Mandiá, editing by Kate Entringer)
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