Food multinational PepsiCo has published quarterly results that exceeded all expectations: as restaurants reopen, demand for soft drinks is rising sharply. At the same time, the company is seeing costs for ingredients, transport and labour rise.
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PepsiCo saw its quarterly sales increase by more than 20 %, as demand for beverages has risen sharply now that restaurants have reopened in most places. Last year, this sector saw a sharp decline as a result of the lockdowns. Snacks sales also did well; but cereal sales in North America declined somewhat: during the lockdowns, consumers ate breakfast at home more often, but that trend seems to be reversing now.
The company says it continued to invest during the pandemic, and that approach is paying off as consumers become more mobile again. However, just like other food companies, PepsiCo also sees the costs of ingredients, transport and labour increase. The multinational is looking at possibilities to increase prices in order to preserve its margins. Thanks to the good results, PepsiCo raises its forecasts for this financial year: sales are now expected to increase by 6 % and earnings per share by 11 %.
