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PepsiCo Inc raised its full-revenue forecast on Tuesday, aided by higher prices and a rebound in demand for its sodas at theaters and restaurants.
Companies are grappling with higher costs on everything from aluminum cans to labor and shipping due to pandemic-induced disruptions to the global supply chain, forcing the packaged food industry to 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 Co, have warned that demand will likely slow as inflation shows no sign of cooling.
The company also said it took a $241 million charge in the first quarter related to property, plant and equipment impairment, as well as inventory write-downs due to the Russia-Ukraine crisis.
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 $16.20 billion in the first quarter ended March 19, beating analysts’ estimates of $15.54 billion, according to IBES data from Refinitiv.