On Tuesday, PepsiCo posted results for the second quarter of the year. As the results were better than expected, it also raised its revenue forecast for the year. The food and beverage giant is seeing demand for its products increase in North America. After the results were announced, PepsiCo shares were 0.5 percent higher, early afternoon trading on the same day. The stock has seen a year-to-date gain of about 1.5 percent.

PepsiCo reported the following in the second quarter of 2022:

Earnings per share (EPS) of $1.86. Refinitiv predicted $1.74 EPS.
Revenue of $20.23 billion. Refinitiv predicted $19.51 billion in revenue.
Net income of $1.43 billion which means $1.03 per share. In 2021, net income was $2.36 billion which meant $1.70 per share.
Organic sales growth was +13 percent when compared to an estimate of +7.48 percent.
A charge of $1.17 billion was reported for the quarter due to the Russia-Ukraine war.

CEO Ramon Laguarta said that their results were due to the dedication of their employees, strength and resilience in their categories as well as factors such as an “agile supply chain”, together with
“go-to market systems” as well as “strong marketplace execution.”

The CEO also said that that their year to date performance was good. So, the company was now expected to see its “full-year organic revenue to increase 10 percent.” Previously the food and beverage giant had estimated that there would be an eight percent increase in revenue.

PepsiCo’s core operating profits saw a slow pace of growth when compared with organic sales at the following major operations:
Frito Lay, North America
Quaker Foods, North America and
North American Beverages businesses.

PepsiCo is expecting $6.63 per share for its full-year earnings. The company is also bracing for inflation and is expecting it to be a little higher in the back half of the year.