PepsiCo has today raised its full-year revenue forecast, as the opening of public venues including cinemas and restaurants following the lifting of pandemic-induced restrictions boosted demand for its sodas and snacks.
The company said revenue from its North America Beverage unit, its largest business, rose 7% in the third quarter on a double-digit increase in net revenue from food-service joints and strong demand for its Mountain Dew soft drink.
Revenue from the company's Frito-Lay North America business also rose about 6% in the quarter,
This showed that pandemic driven demand for salty and savoury snacks was still holding strong despite people starting to spend less time at home.
However, PepsiCo said its net attributable income fell about 3% to $2.22 billion.
This was partly due to higher distribution costs as it grappled with rising raw material prices and global supply chains disruptions, which have pressured profit margins at packaged food companies this year.
Net revenue rose 11.6% to $20.19 billion in the quarter ended September 4, above analysts' estimates of $19.39 billion, according to IBES data from Refinitiv.
The company said it was expecting fiscal 2021 organic revenue to rise about 8%, compared with its previous forecast of a 6% increase.
PepsiCo in August announced a $3.3 billion deal to offload Tropicana and other juice brands in North America.
