Pepsi is ‘carefully navigating a dynamic and volatile supply chain and cost environment,’ the CEO said.
Photo: Mark Hertzberg/Zuma Press
PepsiCo Inc. PEP -0.50% said it raised its guidance for the full year given its performance so far this year, while the company faces continuing supply-chain disruptions and inflationary pressures within the labor, transportation and commodity markets.
The maker of snacks and beverages on Tuesday said it expects organic revenue—a measurement that adjusts for items like foreign-exchange translation, acquisitions and divestitures—to grow about 8% for fiscal 2021. It previously expected organic revenue to grow 6%.
The Purchase, N.Y., company sees core constant currency earnings per share growth of at least 11%, compared with its prior outlook of 11%. The company expects core EPS to grow at least 12%, compared with its previous guidance of 12%.
The company is “carefully navigating a dynamic and volatile supply chain and cost environment,” Chief Executive Ramon Laguarta said.
Food companies have said they are paying more for ingredients and materials, including cooking oil and steel, as costs rise for freight, fuel and labor too.
For the quarter that ended Sept. 4, PepsiCo posted net revenue of $20.19 billion, up 11.6% from the same period last year and beating expectations of analysts polled by FactSet.
However, profit fell to $2.22 billion from $2.29 billion as costs increased. Selling, general and administrative expenses rose to $7.64 billion from $6.92 billion.
Write to Dave Sebastian at [email protected]
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