PepsiCo has raised its full-year revenue forecast, helped by sustained demand for drinks and snacks even in the face of rising prices.
Packaged food makers have so far felt little impact of decades-high inflation on consumer demand, especially in the United States, as people prioritise spending on eating at home rather than at restaurants.
However, signs are starting to emerge that a ceiling on price increases has been reached with some grocery stores now pushing back on price hikes from food companies.
PepsiCo's net revenue rose 5.2% to $20.23 billion in the second quarter ended June 11, beating analysts' estimates of $19.51 billion, according to IBES data from Refinitiv.
The company said it expects fiscal 2022 organic revenue to rise 10%, compared to a previous forecast of an 8% increase.
However, PepsiCo maintained its full-year earnings growth forecast of 8% as surging commodity and freight costs continue to bite into margins.
