US – PepsiCo has reported a 9% net revenue growth in its third-quarter results for 2022, an increase that was not overshadowed by the volume declines in some of the company’s units, including its Frito-Lay North America division.

For the quarter ending 3 September 2022, the company posted net revenues of US$21.97 billion, compared with US$20.1 billion recorded for the same period last year.

The food and beverage giant also reported organic revenue growth of 16%, an operating profit of US$3.35 billion for Q3, and a net income of US$2.7 billion, up from US$2.22 billion a year ago.

In its Frito-Lay North America division, the company said revenue rose 20% in the quarter despite a dip in volume.

Quaker Food North America’s revenue also climbed 15% despite a decline in volume. PepsiCo Beverages North America’s revenue increased 4% on slightly higher volume.

In its European unit, PepsiCo saw revenue increase by 1% despite lower volumes while in Africa, the Middle East, and South Asia, the company saw a 4% rise in revenue on a lower volume of foods and a higher volume of drinks.

Revenue for the unit encompassing Asia-Pacific and China climbed 3% on stronger volume in both food and drinks.

During the quarter ending Sept. 3, the company expanded its energy and sports drink portfolio, taking in a US$550 million stake in Celsius Holdings, which offers fitness-focused energy drinks, in August.

In September, PepsiCo also launched the caffeinated energy drink Gatorade FastTwitch with the NFL. The drink will hit stores in February 2023, but it’s available on NFL sidelines this season.

PepsiCo CEO Ramon Laguarta said: “Our strong results demonstrate that the investments we have made towards becoming an even Faster, even Stronger, and even Better company with pep+ at the center of everything we do are working.”

 We are encouraged by the progress we are making on our strategic agenda, and remain committed to investing in our people, brands, supply chain, and go-to-market systems and winning in the marketplace.”

For Full-Year 2022, the company now projects organic revenue growth of 12%, up from 10%, and core constant currency earnings per share to increase by 10% up from 8%.

In response to its previous announcement that costs will continue rising in the second half of this year, the company said it was accelerating cost management initiatives.

The initiative includes using smaller sizes for its variety packs. In the third quarter, the company’s gross margins remained essentially unchanged compared with a year ago at 53%.

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