PepsiCo Inc beat analysts' estimates for quarterly revenue by more than $1 billion on Thursday, helped by higher prices and robust demand for its snacks and sodas.
The company's shares rose 1.4 per cent in premarket trading, even as it forecast full-year earnings below estimates, signalling the impact from runaway cost inflation.
PepsiCo, which raised prices on its sodas and snacks in the fall and winter, plans more increases this year as costs skyrocket for everything, from aluminium cans to labour and shipping, due to the pandemic and the spread of the Omicron coronavirus variant.
The Lay's chips maker previously said demand has so far held up better than feared in the face of higher prices, but signs the fastest inflation rise in a generation may not ease soon have triggered worries that consumers may soon cut back on purchases.
PepsiCo forecast organic sales to rise 6 per cent in 2022, slowing from the near 10 per cent growth it saw last year. It expects fiscal 2022 core earnings of $6.67 per share, compared with analysts' expectations of $6.73, according to IBES data from Refinitiv.
Still, the company's net revenue rose 12.4 per cent to $25.25 billion in the fourth quarter ended December 25, beating estimates of $24.24 billion.
The company on Thursday also announced a 7 per cent increase in annual dividend and a new $10 billion stock buyback program.
