PepsiCo ups full-year sales outlook

PepsiCo upped its full-year guidance on Tuesday, following a jump in first-quarter revenues.

The soft drinks and snacks giant reported forecast-beating net revenues of $16.2bn in the 12 weeks to 19 March, compared to $14.8bn a year previously. Operating profits rose to $5.3bn from $2.3bn, while net income was $3.06 per share, against $1.24 in March 2021.

As result, the US company – which owns Lays, Tropicana and Quaker, among other brands – now expects to deliver 8% organic revenue growth in the 2022 financial year, up from previous guidance for growth of 6%. Organic revenue strips out the impact of acquisitions, sales and currency effects.

PepsiCo also reiterated its guidance for an 8% increase in core constant currency earnings per share, though it now expects a 2 percentage point foreign exchange translation headwind to impact reported net revenue and core EPS growth.

Ramon Laguarta, chief executive, said the company had been operating in a “dynamic and complex environment” since Russia’s invasion of Ukraine. In March, PepsiCo suspended sales of its drinks in Russia in response to the crisis.

But he continued: “We delivered strong results which reflect our presence in growing, global categories and the investments we have made.

“Given the strength and resilience of our businesses to date, while reflecting higher than expected input cost inflation for the balance of 2022, we expect our full-year organic revenue to increase 8%.

“Looking ahead, we will focus on controlling what we can, such as enhancing our focus on productivity and sharpening our revenue management capabilities.”