(Reuters) – PepsiCo Inc on Tuesday raised its annual revenue and profit forecasts, betting on steady demand for its sodas and snacks as well as price hikes undertaken to offset rising costs.
Major consumer goods companies hiked prices to battle skyrocketing costs of everything from aluminum cans to labor and shipping resulting from supply-chain disruptions due to the pandemic and compounded by the Russia-Ukraine conflict.
In February, the Frito-Lay maker said it would not raise prices of its products further in contrast to rival Coca-Cola.
PepsiCo’s average prices jumped 16% for the quarter, while organic volume slipped 2%.
The company said it expects 2023 organic revenue to rise 8%, compared with its prior forecast of a 6% increase.
PepsiCo now sees annual core earnings per share of $7.27, compared with $7.20 earlier.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila)
