PepsiCo (PEP) posted better-than-expected second quarter earnings Tuesday, and boosted its full-year sales forecast, as demand in north America continued to drive the group's top and bottom line growth.
PepsiCo said core earnings for the three months ending in June were pegged at $1.86 per share, up 8.2% from the same period last year and 12 cents ahead of the Street consensus forecast.
Overall group revenues, PepsiCo said, rose 5.22% to $20.225 billion, again topping analysts forecasts of a $19.513 billion tally. North American revenues at Frito Lay, its snacks division, came in at $4.84 billion. Beverages revenues were up 5.5% at $5.35 billion. Frito-Lay, the group's powerhouse snacks division, saw organic revenues rise 14%, while its Quaker Foods division recorded an 18% growth rate.
Looking into the 2022 financial year, PepsiCo said it sees organic revenue growth of around 10%, topping its previous forecast of 8%, while reiterating its forecast for core earnings of $6.63 per share, a year-on-year growth rate of around 8%.
"We are pleased with our results for the second quarter as our business momentum continued despite ongoing macroeconomic and geopolitical volatility and higher levels of inflation across our markets," said CEO Ramon Laguarta. "Our results are indicative of our highly dedicated employees, the strength and resilience of our categories, agile supply chain and go-to-market systems and strong marketplace execution."
"Our performance also gives us confidence that our investments to become an even Faster, even Stronger, and even Better organization by winning with pep+ are working," he added. "Given our year-to-date performance, we now expect our full-year organic revenue to increase 10 percent (previously 8%) and we continue to expect core constant currency earnings per share to increase 8%."
PepsiCo shares were marked 0.5% higher in early afternoon trading Tuesday to change hands at $171.32 each, a move that would peg the stock's year-to-date gain at around 1.5%.
