No more price hikes vows PepsiCo, following strong quarterly results
PepsiCo Inc has said it will not raise prices of its drinks and snacks any further after multiple rounds of price hikes last year helped the beverage giant post fourth-quarter profit and revenue ahead of analysts’ estimates.
In July, the company said that Pandemic-induced disruptions to the global supply chain and surging raw material costs forced PepsiCo to increases prices of its products.
“We have most of our price increases for the year already in place,” PepsiCo chief financial officer Hugh Johnston told Reuters.
While the company expects inflationary pressures to persist in the year ahead, it sees consumer demand as being resilient.
In contrast Coca-Cola has just announced that it would continue to raise drinks prices further in 2023 to combat high costs.
According to Johnson, PepsiCo is in a “real sweet spot” in terms of consumers since they have enough money to buy themselves affordable treats.
PepsiCo’s shares rose 1.7% to $174.04 after it also raised its annual dividend by 10% to $5.06 per share.
The company’s North America beverages unit, which houses brands such as Mirinda, 7UP and Gatorade, posted an organic revenue growth of 10% in the fourth quarter.
The Frito-Lay maker however, forecast annual profit below estimates and said it expects some pushback on prices in the second half of the year.