The global beverage leader PepsiCo Inc is hopeful that consumers would be returning to their pre-pandemic lifestyles with the reopening of the economies and the wider implementation of Covid-19 vaccines around the world which prompted the company to forecast organic growth in revenue in 2021.
The fourth quarter revenues of the snack and beverage giant also easily neat estimates of the Wall Street with an increase in demand for the company’s products such as Tostitos, Cheetos and Gatorade that are more suited to at-home consumption because of the imposition of the second round of pandemic induced lockdowns in various parts of the world.
For the entire of the current year, the company expects a mid-single digit rise in annual organic revenue and a high-single digit increase in adjusted earnings, said the firm which is globally known for its Lay’s chips and Pepsi sodas.
Forecast of organic revenue to rebound this year was had also been made by rival Coca-Cola.
During the fourth quarter, there was a 5 per cent growth in organic revenue from snacks under the company’s Frito-Lay in the North American market while another 5.5 per cent growth was reported for its sodas and other beverage rose in North America, the largest market for the company.
The brands of the company in most demand were Tostitos and Cheetos which turned out to be the most wanted at-home snacks of consumers.
The company also reported a rise of 98.8 per cent in its net revenues at $22.46 billion in the quarter ended December 26 which, according to IBES data from Refinitiv, beat market expectations of net revenues of $21.8 billion.
A 5 per cent increase in its annual dividend to be paid in June was also announced by the company.
The adjusted earnings per share of the company was at $1.47 against expectations of $1.46.
The company reported an 8 per cent organic revenue growth for its Quaker Foods with its demand rising because many employees are still working from home. Consumers staying back home also demanded more of maple syrup and pancake mix for breakfast during the latest ended quarter for the company.
For 2021, the company also forecast high-single digit growth in core earnings per share while also assuming constant foreign currency exchange rates.
“For 2021, we are planning for our organic revenue and core constant currency EPS growth to be consistent with our long-term objectives,” CEO Ramon Laguarta said in a statement.
(Adapted from Reuters.com)