PepsiCo ups full-year forecasts

The US food and drinks group said net revenues grew 11.6% in the 12 weeks to 4 September, to $20.2bn, ahead of analyst expectations for around $19.9bn, while organic sales improved 9%. Operating profits came in at $3.2bn against $3.0bn a year previously.

Ramon Laguarta, chief executive, said: "We are pleased with our results for the third quarter as we delivered very strong net revenue growth while carefully navigating a dynamic and volatile supply chain and cost environment.

"Given our year-to-date performance, we now expect our full-year organic revenue to increase approximately 8% and core constant currency earnings per share to increase at least 11%."

Previously, PepsiCo expected full-year organic revenues to grow by 6%. Its earnings per share target is unchanged.

The owner of Pepsi, Lays and Tropicana, among other brands, said it had seen market share improvements in key categories in North America, including salty snacks, savoury snacks and carbonated soft drinks, while there had been "sustained strong business momentum" in core international markets.

Laguarta concluded: "Our North American business trends remain resilient while our international business is performing well, despite an uneven recovery across geographies."