US – PepsiCo, a US-based multinational food and beverage company, has reported a 20.5% increase in net revenue in its second-quarter results buoyed by easing pandemic restrictions in its major markets across the world.
For the quarter ending 12 June 2021, the company posted net revenues of US$19.22 billion, compared with the US$15.95 billion recorded for the same period last year.
The company’s PepsiCo Beverages North America division put in a strong performance in Q2 with a 24% increase in net revenue, while volume increased by 15%.
PepsiCo says that it gained market share in categories including carbonated soft drinks, ready-to-drink tea, and juice.
The easing of pandemic-related restrictions and closures compared with the year-ago quarter helped boost net revenue for PepsiCo’s foodservice business and drive-up beverage sales.
The company’s Frito-Lay North America unit saw its net revenue increase 7% and operating profit by 8%. Meanwhile, net revenue for the Quaker Foods North America unit fell 13%, with operating profit seeing a steep decline of 34%.
Africa, Middle East, and South Asia’s net revenue went up 63% with PepsiCo’s Asia Pacific, Australia and New Zealand, and China Region segment recording the second-highest increase of 41%. In Latin America, net revenue rose by 26% and in Europe by 21%.
Meanwhile, PepsiCo’s operating profit for Q2 came in at US$3.13 billion, almost double the US$1.71 billion that the company recorded in the previous quarter.
In its first-quarter results, PepsiCo reported organic revenue growth of 2.4% and said that it expected this to accelerate in the second quarter.
An impressive Q2 saw the company’s organic growth grow fivefold to 12.8% giving the maker of Pepsi and Mountain Dew beverages confidence to raise its full-year earnings guidance.
The company is no longer satisfied with its mid-single-digit growth and is optimistic that it will achieve a 6% organic revenue growth at the end of the year.
“We are pleased with our second-quarter results as we delivered very strong double-digit net revenue and earnings per share growth. Given the strength of our results, we now expect our full-year organic revenue to increase 6%,” said PepsiCo Chairman and CEO, Ramon Laguarta.
During the financial release, PepsiCo revealed plans to pass along higher input costs to customers as inflation accelerates in the United States.
CEO Ramon Laguarta told analysts that the company thinks it can manage the higher costs through a combination of higher prices and increased productivity.
CFO Hugh Johnston said Pepsi expects to keep hiking prices after Labor Day to cater for higher costs for some ingredients, freight, and labor.
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