(New York) The American snacks and beverages group PepsiCo has revised its outlook for 2023 upwards, after posting strong revenue growth in the first quarter, boosted in particular by North America.
In the first quarter of its fiscal year, which ended March 25, the company’s revenue jumped 10.2% to $17.85 billion due to price increases, it said. it indicated in a press release on Tuesday, a figure higher than analysts’ expectations.
The group, which markets Pepsi soft drinks but also Doritos chips, Lipton iced teas and Quaker Oats cereals, recorded a sharp decline in net profit over this period, to 1.93 billion dollars against 4.26 billion. a year ago.
PepsiCo recorded a jump in revenue over this period last year due to the sale of several beverage brands, including Tropicana and Naked, to the French investment fund PAI Partners, for some $3.3 billion.
In detail, over the first three months of the year, revenues in North America of Frito-Lay products (Doritos, Ruffles, Cheetos, etc.) increased by 15%, supported by price increases. Also in this region, sales of the Quaker Foods division (cereals, energy bars) increased by 9% and those of Pepsi soft drinks by 8%.
Latin America also saw solid revenue growth (21%). Revenues in Europe grew 5%. The Africa, Middle East and South Asia region remained almost stable, mainly due to currency effects (2%, but 29% at comparable exchange rates).
Finally, Asia-Pacific was down slightly, again due to currency effects (-1%, but 4% on a like-for-like basis).
On the strength of these results, PepsiCo has raised its forecasts for 2023: it now anticipates growth in its turnover excluding mergers and acquisitions and foreign exchange effects of 8%, against 6% previously.
It also forecasts earnings per share excluding exceptional items up 9% year-on-year, compared to 8% previously announced. The group continues to plan share buybacks of around one billion dollars for the current year.
The announcement was welcomed by investors: PepsiCo’s stock rose 1.35% to $188 in electronic trading before the opening of the New York Stock Exchange.