PepsiCo posts 8.8% sales growth in Q3, raises full-year outlook

PepsiCo has reported an 8.8% net revenue growth in its third-quarter results for 2022, and now expects its full-year organic revenue to increase by 12%.

For the quarter ending 3 September 2022, the company posted net revenues of $21.97 billion, compared with $20.1 billion recorded for the same period last year. Meanwhile, PepsiCo’s operating profit for Q3 came in at $3.35 billion.

The food and beverage giant also reported organic revenue growth of 16% for Q3 and announced that it expects its financial guidance for the full year to rise from 10% to 12% organic revenue growth.

In Q3, PepsiCo Beverages North America division saw a 4% increase in net revenue, while volume increased by 1%. The company’s Frito-Lay North America unit net revenue increased by 20% and operating profit by 17%. Meanwhile, net revenue and operating profit for the Quaker Foods North America unit both rose by 15%.

PepsiCo’s Latin America net revenue recorded the highest increase of 20%. Africa, Middle East and South Asia’s net revenue grew by 4%, and PepsiCo’s Asia Pacific, Australia and New Zealand and China Region increased by 3%. Europe saw a 1% growth.

PepsiCo CEO Ramon Laguarta said: “We are very pleased with our results for the third quarter as our global business momentum remains strong. Given our year-to-date performance, we now expect our full-year organic revenue to increase 12% (previously 10%) and core constant currency earnings per share to increase 10% (previously 8%)”.

He continued: “Our strong results demonstrate that the investments we have made towards becoming an even Faster, even Stronger and even Better company with pep+ at the centre of everything we do are working. We are encouraged by the progress we are making on our strategic agenda, and remain committed to investing in our people, brands, supply chain and go-to-market systems and winning in the marketplace.”