PepsiCo Boosts Outlook as Consumers Keep Buying Despite Inflation
- Organic revenue seen growing 10%, up from 8% previously
- Consumer demand trends show ‘strength and resilience’
Pepsi reported sales of $20.2 billion in the quarter.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
PepsiCo Inc. is winning the inflation battle so far, successfully passing on surging commodity costs by persuading consumers to pay more for their soda and chips.
Higher prices for raw commodities like sugar and increased wages for labor led the snack and drink giant to charge customers about 12% more on average in the second quarter, the company said Tuesday. And though inflation-wary consumers only slightly increased the amount of PepsiCo food and beverages that they purchased, the higher prices enabled the company to increase its profit outlook, saying it expects revenue to grow 10% this year.