PepsiCo Inc. raised its annual forecasts on Tuesday after price hikes undertaken to offset higher costs and steady demand helped the soda and snack giant beat first-quarter results.
The results pointed to a resilient consumer and followed similar quarterly performances by rival Coca-Cola and Nestle. PepsiCo’s shares rose 2 percent in early trading.
Average prices jumped 16 percent in the first quarter, PepsiCo said, while organic volume slipped 2 percent.
Global consumer goods companies have raised prices since the pandemic to battle a jump in costs of raw materials, labor and shipping.
“We do not expect commodity prices to decrease for us, only the rate of inflation will get a little bit lighter during the course of the year,” Chief Financial Officer Hugh Johnston told Reuters….