Strong numbers: PepsiCo again raises its full-year targets after an unexpectedly strong quarter – PepsiCo shares in demand | news
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Sales and earnings increased surprisingly strongly in the third quarter and significantly exceeded analysts’ expectations. CEO Ramon Laguarta again increased the targets for the year – for the third time this year. “Our strong results show that our investments are bearing fruit,” the manager said in Purchase, New York, on Wednesday. The stock was up around 2 percent in the pre-market session.
In 2022, revenue is now expected to increase by twelve percent, excluding currency effects – in the summer PepsiCo had targeted an increase of ten percent. Adjusted earnings per share (EPS) are now expected to increase by ten percent instead of the previously planned eight percent. In the third quarter, which ran until the beginning of September, sales rose by almost nine percent compared to the previous year to almost 22 billion US dollars (around 22.7 billion euros) – with the strong dollar significantly inhibiting growth. Without negative currency effects, organic growth would have been 16 percent.
However, the group with the almost eponymous cold drink Pepsi and products such as Lay’s Chips and oatmeal from Quaker Oats has pushed through higher prices in view of the rising costs on all sides. Although customers were less likely to buy certain foods, PepsiCo was able to more than compensate for this with increases in sales of its soft drinks. The bottom line is that profits rose by around half a billion to 2.7 billion dollars.
PepsiCo shares rose 4.18 percent in NASDAQ trading to $169.39.
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