PepsiCo aims to build on surging Q2 net sales of 20.5% with better-for-you beverages, snacks

At the same time, consumers who continue to stick close to home also are rewarding the beverage and snack giant for better-for-you innovations, including reduced sugar beverages and expanded snack packs offerings, executives told analysts July 13 during the firm’s quarterly call.

Considering the success of the last quarter and with optimism that recent innovations and new marketing strategies will help it meet evolving consumer demands going forward, PepsiCo raised its outlook for the full-year to reach 11% growth in constant currency earnings per share, up from a previous forecast of high-single digit growth. This surpasses analysts expected full-year earnings growth of 7.2%.

The revised predictions also take into account rising costs that are impacting businesses across the industry, including for raw ingredients, some inputs, labor and freight.

“We feel quite comfortable and confident that through a combination of net revenue management initiatives, and increased productivity, we can navigate this,”​ Ramon Laguarta, chairman and CEO, told analysts. He added PepsiCo is working with retailers to “make the right decisions on pricing,”​ which likely will go into effect after Labor Day.

Increasing consumer mobility opens opportunities

Much of PepsiCo’s growth in the quarter came from its North American beverage business, which saw organic revenue growth accelerate to 21% thanks partly to the revival of foodservice and the c-store and gas channels, which were hit hard during the pandemic when lockdowns kept people at home.



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