PepsiCo Inc exceeded quarterly sales predictions for the first quarter while also increasing its outlook for the entire year in its announcement for quarterly results on Tuesday. The company cited consistent and continued demand for its sodas and snacks despite repeated rounds of price increases to be the driver for it increasing its annual predictions for financial performance.
Pandemic-induced interruptions in the global supply chain, combined with continued surge in inflation rates throughout the world, have driven prices up for almost all of the raw materials for the company –everything from aluminium cans to labour and shipping. That had forced the packaged food firm to increase the prices of its product almost on a daily basis.
PepsiCo has said it may boost prices later this year if expenses rise faster than projected, but analysts and firms, including archrival Coca-Cola Co, have warned that demand will likely drop while inflation remains high.
In addition, the Lays chip company reported a $241 million charge in the first quarter for property, plant, and equipment impairment, as well as inventory write-downs owing to the Russia-Ukraine crisis.
PepsiCo and Coca-Cola said in March that they would discontinue soda sales in Russia, joining a slew of other large American companies that had shut down some or all of their operations in the country following Moscow's invasion of Ukraine.
The business now expects organic sales to climb by 8 per cent in fiscal 2022, up from a 6% increase previously projected.
Pepsico's net revenue increased 9.3 per cent to $16.20 billion in the first quarter ended March 19, aided by the easing of COVID-19 capacity restrictions in public venues where Pepsi cola is sold, such as restaurants and movie theatres.
According to Refinitiv IBES data, this exceeded analysts' revenue projections of $15.54 billion.
However, due to the impact of a stronger US currency, the business reduced its full-year core earnings per share expectation to $6.63 from $6.67.
On Tuesday, the company's stock increased slightly in premarket trade.
(Source:www.livemint.com)
Pandemic-induced interruptions in the global supply chain, combined with continued surge in inflation rates throughout the world, have driven prices up for almost all of the raw materials for the company –everything from aluminium cans to labour and shipping. That had forced the packaged food firm to increase the prices of its product almost on a daily basis.
PepsiCo has said it may boost prices later this year if expenses rise faster than projected, but analysts and firms, including archrival Coca-Cola Co, have warned that demand will likely drop while inflation remains high.
In addition, the Lays chip company reported a $241 million charge in the first quarter for property, plant, and equipment impairment, as well as inventory write-downs owing to the Russia-Ukraine crisis.
PepsiCo and Coca-Cola said in March that they would discontinue soda sales in Russia, joining a slew of other large American companies that had shut down some or all of their operations in the country following Moscow's invasion of Ukraine.
The business now expects organic sales to climb by 8 per cent in fiscal 2022, up from a 6% increase previously projected.
Pepsico's net revenue increased 9.3 per cent to $16.20 billion in the first quarter ended March 19, aided by the easing of COVID-19 capacity restrictions in public venues where Pepsi cola is sold, such as restaurants and movie theatres.
According to Refinitiv IBES data, this exceeded analysts' revenue projections of $15.54 billion.
However, due to the impact of a stronger US currency, the business reduced its full-year core earnings per share expectation to $6.63 from $6.67.
On Tuesday, the company's stock increased slightly in premarket trade.
(Source:www.livemint.com)
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