PepsiCo raises expectations for full year as it navigates supply chain environment

Texas News Today

PepsiCo Ltd.

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The company said it raised its year-long guidance in light of its performance so far this year, while supply chain disruptions and inflationary pressures in labor, transportation and commodity markets continue.

Snack and beverage makers on Tuesday said they expect around 8% growth in 2021 organic revenue (measures adjusting for foreign exchange, acquisitions, sales, etc.). Previously, we predicted organic revenue growth of 6%.

The purchase in New York is expected to increase core constant currency earnings per share by at least 11%, compared to the previous outlook of 11%. The company expects core EPS to grow at least 12% compared to its previous guidance of 12%.

The company “carefully navigates the dynamic and volatile supply chain and cost environment,” said CEO Ramon Laguarta.

Food companies say they are paying more for materials and materials such as cooking oil and steel as freight, fuel and labor costs also increase.

PepsiCo’s net sales for the quarter ended Sept. 4 were $20.19 billion, up 11.6% from the year-ago quarter, which exceeded expectations from FactSet’s survey analysts.

However, as costs rose, profits fell from $2.29 billion to $2.22 billion. Selling, general and administrative expenses increased from $6.92 billion to $7.64 billion.

Satellite images show the size of the backlog at a port in California, as ongoing supply chain issues threaten the holiday shopping season. WSJ’s Jennifer Smith explains the reasons for the ship and cargo stoppage. Photo: Planet Labs Inc.

write to Dave Sebastian ([email protected])

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