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PepsiCo earnings beat expectations as price hikes boost snack and beverage sales

Pepsi sodas are displayed on shelves at a Walmart Supercenter on December 06, 2022 in Austin, Texas. PepsiCo, the maker of Pepsi soda, plans to cut hundreds of corporate jobs at its North American division according to a news report from The Wall Street Journal.

Brandon Bell | Getty Images

PepsiCo on Thursday reported quarterly earnings and revenue that beat analysts’ expectations, fueled by higher prices for its snacks and drinks.

Shares of the company rose more than 1% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.67 adjusted vs. $1.65 expected
  • Revenue: $28 billion vs. $26.84 billion expected

The food and beverage giant reported fourth-quarter net income of $518 million, or 37 cents per share, down from $1.32 billion, or 95 cents per share, a year earlier.

Excluding gains from selling its juice business, write-downs of its Russian assets and other items, Pepsi earned $1.67 per share.

Net sales rose 10.9% to $28 billion. The company’s organic revenue, which strips out the impact of acquisitions and divestitures, climbed 14.6% in the quarter.

But Pepsi saw volume fall 2% across its food business worldwide as price hikes hurt consumer demand.

Looking to 2023, Pepsi is projecting a 6% increase in organic revenue and 8% growth in its core constant currency earnings per share. Wall Street is anticipating net sales growth of 3.5% and earnings per share growth of 7.3%.

Read the full PepsiCo earnings report here.

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