PepsiCo Inc (NASDAQ:PEP) raised its annual profit forecast for the third time this year on Tuesday, relying on the numerous price hikes it implemented across its major markets and the resilient demand for its snacks and beverages.

Shares of the company, which owns brands like Mirinda and Gatorade, climbed more than 2% in premarket trading following its outperformance of third-quarter profit expectations.

PepsiCo and its rival Coca-Cola (NYSE:KO) have been relatively unaffected by price hikes due to their dominant position in the global carbonated drinks market and the preference of budget-conscious consumers for products considered “affordable luxuries.”

In the third quarter ending September 9, PepsiCo saw its average prices increase by 11%, while organic volume declined by 2.5%. This was compared to an average price hike of 16% in the first quarter of 2023.

The net revenue increased by almost 7% to $23.45 billion in the quarter, surpassing estimates of $23.39 billion, according to LSEG data.

On an adjusted basis, PepsiCo earned $2.25 per share, exceeding estimates of $2.15.

Investors had been concerned about the impact of multiple price increases to offset rising costs caused by supply chain disruptions related to the pandemic and the Russia-Ukraine conflict, which could potentially reduce demand.

Additionally, countries such as France are exerting pressure on major consumer goods companies like PepsiCo and Procter & Gamble (PG.N) to lower product prices.

In the third quarter, organic revenue at PepsiCo’s North America beverage unit, the company’s largest business, increased by 6%, but volumes declined by 6%.

PepsiCo has also benefited from its extensive snacks business, which includes brands like Doritos and Cheetos. The Frito-Lay North America unit reported a 7% increase in organic revenue, with only a marginal decline in volumes.

The company now expects core earnings per share for fiscal year 2023 to be $7.54, up from its previous forecast of $7.47, while maintaining its annual organic revenue growth target of 10%.