Latest Updates: US Services Growth Accelerates Despite Workforce Issues

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PepsiCo increased its annual forecast for the second time in three months, as resurgent demand in restaurants and arenas boosted quarterly sales.

The U.S. food and beverage company’s net revenue rose 11.6% year-on-year to $ 20.2 billion in the three months to early September, eclipsing analyst expectations of 19 , $ 4 billion. Organic sales increased 9%.

The company said it expects the snack and beverage business in North America to remain resilient for the remainder of the year, while its international markets are expected to perform well despite patchy economic recoveries.

PepsiCo predicted that organic sales would increase 8% year-on-year in 2021, from a previous estimate of 6%. Adjusted earnings per share, excluding one-time charges, was on track to climb “by at least” 12%, PepsiCo said. He previously predicted growth of exactly 12%.

During the pandemic, homebound consumers stocked up on groceries, from salty snacks to pancake mixes, but closures and limited capacity at restaurants, cinemas and sporting events have driven demand for soft drinks from PepsiCo.

But the rollout of Covid-19 vaccinations and the removal of most coronavirus restrictions have supported a resumption in sales in public places this year.

The company’s North American food service beverage sales increased double digits from the third quarter of last year. Its Frito-Lay snack business in North America also recorded strong net sales growth in food services and convenience stores.

Ramon Laguarta, managing director, said third quarter results were strong despite a “dynamic and volatile supply chain and cost environment”.

PepsiCo earned $ 1.79 per share on an adjusted basis during the quarter. Analysts were looking for lower earnings per share of $ 1.73.

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