Pepsico reported a jump in sales in the third quarter, fuelled by demand for its snack brands including Doritos and Cheetos.
Overall net revenue rose more than five per cent to $18.09bn in the quarter ended 5 September, beating analysts’ expectations of $17.23bn.
Sales of snacks under the company’s Frito-Lay North America unit rose 7 per cent in the third quarter, while higher demand for breakfast foods led to a 6 per cent rise at its Quaker Foods business.
The company also provided an update on its full-year expectations after pulling guidance at the beginning of the coronavirus pandemic.
Pepsi said it expects full-year organic revenue growth to be approximately four per cent, with full-year core earnings per share of $5.50 compared to $5.53 last year.
In the latest quarter, net profit attributable to the company rose to $2.29bn, or $1.65 per share, from $2.1bn or $1.49 per share, a year earlier.
Excluding items, the company earned $1.66 per share, beating market expectations of $1.49 per share.
“Despite the ongoing volatility and complexity in our operating environment, I believe our third quarter performances reinforces the diversification of our portfolio, the resilience and agility of our teams across every continent and demonstrates our ability to support our customers and communities during their time of need while also delivering good results for our shareholders,” chairman and chief executive Ramon Laguarta said.
William Ryder, equity analyst at Hargreaves Lansdown, added: “Management’s confidence is reflected in the new guidance and commitment to shareholder returns, although a lot could still happen between now and the end of the year. Whatever happens, we think Pepsi’s portfolio of brands has enough fizz to carry the group through another round of disruption.”