Investing.com -- PepsiCo Inc (NASDAQ:PEP) has posted better-than-expected core income in the third quarter and raised its full-year profit guidance, as the beverage maker was boosted by higher pricing that helped offset a drop in volumes.
In the twelve weeks ended on September 9, the company behind brands like Lay's potato chips and Quaker Oats porridge reported core earnings per share of $2.25, rising from $1.97 in the same period last year and beating Bloomberg consensus estimates of $2.16.
Net revenue in particular jumped by 6.7% annually to $23.45 billion. This was driven in part by an 11% rise in effective net pricing, which reflects the impact of discrete pricing actions, sales incentives and the mix resulting from selling products in different package sizes and countries. Organic volumes, meanwhile, contracted by 2.5%.
“We are pleased with our performance as our businesses and associates displayed tremendous agility and resilience across geographies and categories in an evolving and dynamic environment," PepsiCo Chairman and Chief Executive Officer Ramon Laguarta said in a statement.
New York-based PepsiCo, which has seen customer demand mostly hold up despite a recent inflation-fueled surge in prices due to its prominence in the global market for carbonated beverages, also said it now expects core EPS to climb by 13% this year, up from its prior outlook of 12%. It reiterated its estimate for 2023 organic revenue growth of 10% as well.
Shares in PepsiCo moved higher in premarket U.S. trading on Tuesday.