PepsiCo raises revenue forecast

PepsiCo Inc yesterday raised its fullyear revenue forecast as the opening of public venues boosted demand for its sodas and snacks.

The company said revenue from its North America Beverage unit, its largest business, rose 7% in the third quarter on a double-digit increase in net revenue from food-service joints and strong demand for its Mountain Dew soft drink.

Revenue from the company’s FritoLay North America business also rose about 6% in the quarter, signaling that pandemic driven demand for salty and savory snacks was still holding strong despite people starting to spend less time at home.

However, PepsiCo’s net attributable income fell about 3% to $2.22 billion, due in part to higher distribution costs as it grappled with rising raw material prices and global supply chains disruptions.

Net revenue rose 11.6% to $20.19 billion in the quarter ended Sept 4, above analysts’ estimates of $19.39 billion, according to IBES data from Refinitiv.

The company said it was expecting fiscal 2021 organic revenue to rise about 8%, compared with its prior forecast of a 6% increase.