PepsiCo has reported a “very strong” net revenue growth of 11.6% for its third-quarter results amid a “volatile supply chain and cost environment”.
The beverage and snacks giant posted net revenues of $20.1 billion in the third quarter ended 4 September, up from the $18.09 billion recorded for the same period last year. Meanwhile, PepsiCo’s operating profit for Q3 came in at $3.16 billion.
PepsiCo has reported organic revenue growth of 9% and announced that it expects its organic revenue to increase by 8%, compared with the 6% growth in Q2.
PepsiCo Beverages North America division saw a 7% organic revenue growth for Q3, while volume increased by 3%.
The company’s Frito-Lay North America business increased its organic revenue by 5% as the Covid-19 pandemic snacking habits remained.
The Quaker Foods North America business saw its organic revenue increase by 1%. However, it was the only unit that recorded a decrease in volume and the largest decline in operating profits, dropping by 27%.
Meanwhile, Africa, Middle East and South Asia’s net revenue rose by 33% to $1.66 billion. PepsiCo’s Latin America net revenue went up 27% to $2.1 billion, while Asia Pacific, Australia and New Zealand and China Region grew sales by 27% to $1.14 billion and Europe by 9% to $3.61 billion.
PepsiCo’s CEO and chairman, Ramon Laguarta, said: “We are pleased with our results for the third quarter as we delivered very strong net revenue growth while carefully navigating a dynamic and volatile supply chain and cost environment. Given our year-to-date performance, we now expect our full-year organic revenue to increase approximately 8% and core constant currency earnings per share to increase at least 11%.”
Laguarta continued: “Our strong year-to-date results demonstrate that the investments we have made towards becoming a faster, stronger, and better company are working. To further complement and enhance our strategic framework, we recently introduced PepsiCo Positive (pep+), a fundamental end-to-end transformation of what we do and how we do it to create growth and shared value with sustainability and human capital at the centre.”
“We are extremely pleased with the progress we are making on our strategic agenda and remain committed to the investments in our people, supply chain, plants, go-to-market systems, and digitisation initiatives to build competitive advantages and win in the marketplace.”
© FoodBev Media Ltd 2021
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