PepsiCo boosts full-year forecasts

Shares in PepsiCo fizzed on Wednesday after the snack giant raised annual revenue and profit forecasts.

The US firm said 2022 core earnings per share were likely to come in around $6.73, compared to a previous forecast for $6.63. Organic revenue growth, meanwhile, was expected to be 12%, up from an earlier forecast for 10%, or 10% – compared to 8% forecast previously – on a core constant currency basis.

PepsiCo also posted third-quarter numbers ahead of forecasts, with net revenue ahead 8.8% at $21.97bn and EPS ahead 22% at $1.95. Analysts had been expecting revenues closer to $20.84bn, and EPS of around $1.82.

As at 1300 BST, shares in PepsiCo had put on 3% in pre-market trading.

Chief executive Ramon Laguarta said the company’s global business momentum “remains strong”.

He continued: “Our strong results demonstrate that the investments we have made…are working. We are encouraged by the progress we are making on our strategic agenda.”

The firm, whose brands include Lay’s, Tropicana, Doritos and Gatorade, as well as Pepsi, said it had benefited from market share improvements in key categories during the quarter, including savoury snacks and sports drinks in North America. It was also able to increase prices in response to rising input inflation.