PepsiCo Inc (PEP.O) on Wednesday raised its annual revenue and profit forecasts as the soda and snack giant benefits from multiple price increases to blunt rising costs.
The company's shares rose 2.3% in premarket trading as it also beat third-quarter revenue estimates.
Consumers, wrestling with a relentless surge in inflation, are eating more at home than at restaurants as they cut back on discretionary spending. A trend that has benefited U.S. packaged food makers like PepsiCo that offer everything from snacks to sports drinks.
A near duopoly in the carbonated drinks market with Coca-Cola (KO.N) has helped PepsiCo raise prices with little push back while its strong market position in snacks has also buffered the company.
PepsiCo said it expects 2022 organic revenue to rise 12%, compared to a prior forecast of a 10% increase. PepsiCo had raised its revenue expectations in April and July.
The company said it expects fiscal 2022 core constant currency earnings per share of about $6.73, compared to its previous forecast of $6.63.
