PepsiCo raised its guidance for Wednesday as higher prices helped boost the snack and beverage maker’s third-quarter profit.
The stock was up about 2% in premarket trading.
For the quarter that ended September 3, PepsiCo’s revenue rose 9% year-on-year to $21.97 billion, beating Wall Street expectations. The increase came despite falling volumes across several company units, including the Frito-Lay North America division.
PepsiCo previously said it expects its spending to continue increasing in the year’s second half. In response, the company announced that it was accelerating cost management initiatives, including using smaller sizes for its various packaging.
Here’s how Mountain Dew, Gatorade, and Lay’s owners compare to Wall Street ratings, according to Refinitiv:
Earnings per share: $1.97 adjusted versus $1.84 expected.
Revenue: $21.97 billion versus the expected $20.84 billion.
For 2022, the PepsiCo anticipates organic sales growth of 12%, up from 10%. The development of currency net earnings per share is expected to be 10% versus 8%. At its Frito-Lay North America unit, the company said sales were up 20 percent for the quarter despite falling volumes. Quaker Food North America sales also rose 15% despite falling volumes. PepsiCo Beverages North America revenue was up 4% on slightly higher volume.
PepsiCo reported a 1% increase in sales in its European division despite lower volumes. Africa, the Middle East & South Asia saw a 4% increase in sales due to lower food volumes and higher beverage volumes. Revenue for the unit, which includes Asia-Pacific and China, rose 3% on higher volumes in both food and beverage.
For September 3, PepsiCo’s net profit ended at $2.7 billion, up from $2.22 billion a year earlier. Total revenue increased to $21.97 billion from $20.19 billion last year.