Pepsi revenues climb despite several price increases          

PepsiCo said it could raise prices later in the year if costs climb more than expected, as rivals warn demand will slow amid rising inflation

PepsiCo beat estimates for quarterly revenue and raised its full-year forecast on steady demand for its drinks and snacks even in the face of several rounds of price increases.

Pandemic-induced disruptions to the global supply chain and runaway inflation have sent costs soaring on everything from aluminium cans to labour and shipping, forcing the packaged food industry to regularly raise product prices.

PepsiCo has said it could potentially raise prices later in the year if costs climb more than expected, but analysts and companies, including arch rival Coca-Cola, have warned that demand will likely slow as inflation shows no sign of cooling. 

PepsiCo, which also makes Lays crisps, said it took a $241m charge in the first quarter related to property, plant, and equipment impairment, as well as inventory writedowns due to the Russia-Ukraine crisis.

In March, PepsiCo and Coca-Cola said they were suspending drink sales in Russia, as a cascade of major American brands ceased some or all of their businesses in the country following Moscow's invasion of Ukraine.

The company said it now expects fiscal 2022 organic revenue to rise 8%, compared with its forecast of a 6% increase.

Pepsico's net revenue rose 9.3% to $16.2bn in the first quarter ended March 19, also helped by the lifting of Covid-19 capacity restrictions in public places such as restaurants and cinemas where Pepsi cola is sold.

That beat analysts' revenue estimates of $15.54bn, according to IBES data from Refinitiv. 

• Reuters