PepsiCo bets on higher soda sales in second qtr as restaurants reopen

Topics PepsiCo | Beverages | US companies

PepsiCo Inc said on Thursday it expects organic revenue growth to pick up pace in the second quarter, betting on higher soda sales from restaurants that are gradually reopening following the speedy rollout of coronavirus vaccines.

A pandemic winner, the company has been benefiting from homebound consumers stocking up their pantries with salty chips, sodas and oatmeal and posted first-quarter revenue that beat Wall Street expectations.

"We are assuming that vaccination efforts will accelerate and population mobility will improve," Chief Executive Officer Ramon Laguarta said.

"This should benefit the foodservice channel as and when travel, lodging, dining, education, and entertainment trends accelerate."

PepsiCo said it expects the North American beverage business to "perform well" and the snack unit to "remain resilient." The company, however, stuck to its organic revenue growth and earnings forecast for the year.

Sales of snacks under the company's Frito-Lay North America unit rose 4% in the quarter ended March 20, while those of sodas and other beverages rose 5% in North America, its biggest market.

Net revenue rose 6.8% to $14.82 billion, above analysts' average estimate of $14.55 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose to $1.71 billion, or $1.24 per share, from $1.34 billion, or 96 cents per share, a year earlier.

 

(Reporting by Nivedita Balu in Bengaluru; Editing by Arun Koyyur)



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel