(Bloomberg) -- PepsiCo Inc. raised its sales forecast on rising appetite for its beverages and snack foods, even as the soft-drinks maker grapples with supply-chain constraints that are making it more challenging to fully meet consumer demand.
Full-year revenue should rise 8% on an organic basis, PepsiCo said Tuesday, having previously forecast 6% growth. The company also said core earnings per share will at least reach its $6.20 target.
Revenue rose 9% on an organic basis in the third quarter as pandemic-weary consumers continued to emerge from their homes, purchasing PepsiCo's sugary sodas and salty snacks at public venues such as restaurants, bars and stadiums. The results demonstrate that PepsiCo continues to recover from the Covid-19 pandemic, with its North American businesses bouncing back from the crisis that altered consumption habits for more than a year.
Total organic sales, which exclude acquisitions and currency changes, reached $20.2 billion in the quarter, the company said in a statement Tuesday. Analysts expected $19.4 billion on average, according to estimates compiled by Bloomberg.
PepsiCo shares rose 0.8% to $151.42 at 9:36 a.m. in New York. The stock was up 1.3% this year through Monday, trailing behind the 14% gain of the S&P 500 index.
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Earnings for the quarter were $1.79 a share, PepsiCo said, beating analysts' average estimate of $1.74. The company's Frito-Lay North America unit saw organic revenue increase by 5% during the quarter, as products such as corn chips and potato chips remained popular. The Quaker Foods North America unit had growth of only 1%, with fewer consumers having breakfast foods such as the company's cereals at home.
PepsiCo's North American beverage business benefited from the rising number of people who are again buying fountain drinks such as Diet Pepsi and Mountain Dew at on-premise venues. PepsiCo said its Latin America business saw organic revenue increase by 19%, as more consumers in those countries have received Covid-19 vaccinations and returned to public venues.
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