09 February 2023

Pepsi sales rise 10% in the fourth quarter after price hikes

09 February 2023

Pepsi has reported better-than-expected sales in the fourth quarter after hiking prices for its drinks and snacks.

Revenue rose more than 10% to 28 billion US dollars (£23.1 billion).

That was better than the 26.8 billion dollars (£22.1 billion) Wall Street had forecast, according to analysts polled by FactSet.

Pepsi’s net income fell 60% to 535 million dollars (£440.8 million), largely due to a 1.5 billion dollar (£1.24 billion) impairment charge for its SodaStream brand and other assets.

Without one-time items, Pepsi earned 1.67 dollars (£1.38) per share in the October-December period, beating analysts’ forecast of 1.65 dollars (£1.36).

Higher prices helped it navigate rising costs for fuel as well as commodities like cooking oil and potatoes, the company said on Thursday.

The New York firm expects to deliver organic revenue growth of 6% this year, a slower pace from its full-year organic growth of 14.4% in 2022.

It also plans one billion dollars (£820 million) in share repurchases.

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