PepsiCo Reports Revenue Growth, Raises Revenue Outlook for Year

By Ngai Yeung

PepsiCo reported a 10.4% increase in revenue in the latest quarter, driven by strong demand for its snacks, and raised its sales outlook for the year.

The company said that at its North American snacks unit, which sells Doritos and Lays potato chips, revenue rose 14%. Revenue increased 10% for its North American beverage business, which sells the Mountain Dew and Sierra Mist brands along with its namesake soda.

Revenue increased 1% for its North American packaged-food business, which sells the Quaker Oats and Rice-A-Roni brands, though sales volume dropped by 5% for the quarter ended June 17.

Overall revenue came in at $22.3 billion, surpassing the $21.7 billion expected by analysts, according to FactSet.

The soda and snacks giant reported second-quarter profit of $2.75 billion, or $1.99 a share, compared with $1.4 billion in the year earlier. Earnings per share adjusted to exclude items such as conflict in Ukraine came in at $2.09, surpassing analysts' expectations of $1.96, according to FactSet.

The Purchase, N.Y., company Thursday raised its forecast for a key sales metric, projecting that organic revenue will go up 10% this year, compared with its previous forecast of 8%.

Write to Ngai Yeung at ngai.yeung@wsj.com

(END) Dow Jones Newswires

July 13, 2023 06:33 ET (10:33 GMT)

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