PepsiCo on Tuesday raised its annual profit forecast again this year on inflation-related cost increases and resilient demand, saying on Tuesday it is now "well-positioned to adapt and execute in a dynamic consumer environment with trusted brands."
The company said average prices went up 11% over the third quarter while organic volume fell 2.5%.
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The company also predicts 2023 core earnings per share of $7.54 compared with its previous estimate of $7.47. PepsiCo estimated core earnings per share of $7.20 when it provided its annual forecast for the first time in February.
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PepsiCo also reported a 6.7% pop in third-quarter net revenue growth, propelling the year-to-date increase to 8.9%.
"We believe that our businesses can continue to perform well in the coming years with category growth normalizing, as we have made numerous investments in our brands, manufacturing capacity, go-to-market systems, supply chain, technology, and people, to execute against our strategic framework and modernize our company," Ramon Laguarta said.
Meanwhile, PepsiCo’s North American Frito-Lay unit reported a 7% spike in organic revenue as volumes fell marginally.
Trademark brands like Doritos, Cheetos, and Ruffles delivered strong net revenue growth, while smaller, emerging brands such as PopCorners, SunChips, and Miss Vickie’s each delivered double-digit net revenue growth, the company said.
Reuters contributed to this report.
