PepsiCo beat quarterly revenue estimates on Tuesday and raised its full-year forecast for demand for its soft drinks and snacks, despite several rounds of price increases.
PepsiCo said it could raise prices later in the year if costs rise more than expected, but analysts and companies, including rival Coca-Cola, have warned that demand is likely to slow as inflation shows no signs of slowing.
The company also said it received a charge of $241 million in the first quarter linked to property, plant and equipment losses, as well as inventory write-offs due to the Russia-Ukraine crisis.
In March, PepsiCo and Coca-Cola said they were suspending soft drink sales in Russia as several major American brands closed some or all of their business in the country following Moscow’s invasion of Ukraine.
The company said it now expects fiscal 2022 organic revenue to increase by 8%, compared with a forecast of a 6% increase.
Pepsico’s net revenue rose 9.3% to $16.2 billion in the quarter ended March 19, also helped by the lifting of audience capacity restrictions at venues such as restaurants and theaters, beating analysts’ revenue estimates. $15.54 billion, according to IBES data from Refinitiv.
