(Reuters) – PepsiCo Inc raised its full-year revenue forecast on Tuesday, helped by sustained demand for sodas and snacks even in the face of rising prices.
Packaged food makers have so far felt little impact of decades-high inflation on consumer demand, especially in the United States, as people prioritize spending on eating at home rather than at restaurants.
However, signs are starting to emerge that a ceiling on price increases has been reached with some grocery stores now pushing back on price hikes from food companies.
PepsiCo’s net revenue rose 5.2% to $20.23 billion in the second quarter ended June 11, beating analysts’ estimates of $19.51 billion, according to IBES data from Refinitiv.
The company said it expects fiscal 2022 organic revenue to rise 10%, compared to a previous forecast of an 8% increase.
However, PepsiCo maintained its full-year earnings growth forecast of 8% as surging commodity and freight costs continue to bite into margins.
(Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)
