PepsiCo (PEP) posted stronger-than-expected third quarter earnings Wednesday, while boosting its full-year profit forecast, as impressive gains from Frito-Lay continued to power the beverage giant's bottom line.
PepsiCo said core earnings for the three months ending in September were pegged at $1.97 per share, up 10.05% from the same period last year and 13 cents ahead of the Street consensus forecast.
Overall group revenues, PepsiCo said, rose 8.3% to $21.97 billion, again topping analysts forecasts of a $20.8 billion tally.
North American revenues at Frito Lay, its snacks division, came in at $5.563 billion, up nearly 20% from last year -- even amid a 2% decline in overall volumes -- while beverages revenues were up 3.6% at $6.635 billion.
Looking into the 2022 financial year, PepsiCo said it sees organic revenue growth of around 12%, topping its previous forecast of 10%, while boosting its forecast for core earnings for the year to $6.67 per share, a four cent improvement on its previous estimate.
“We are very pleased with our results for the third quarter as our global business momentum remains strong," said CEO Ramon Laguarta “Our strong results demonstrate that the investments we have made towards becoming an even Faster, even Stronger, and even Better company with pep+ at the center of everything we do are working."
"We are encouraged by the progress we are making on our strategic agenda, and remain committed to investing in our people, brands, supply chain, and go-to-market systems and winning in the marketplace,” he added.
PepsiCo shares were marked 4% higher in the opening hour of trading following the earnings release to change hands at $169.00 each.
