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Stock Markets
10 Feb 2022
PepsiCo Soars, Exceeding Investor Expectations amid Lingering Inflation Concerns
The Index Today
PepsiCo Inc. exceeded analyst predictions on Thursday after reporting over $1 billion in fourth quarter earnings. The surge can be attributed to a growing demand for the company’s food products even as prices increase.
The conglomerate’s shares edged higher by 1.4% during Thursday’s premarket trading session despite the drop in its full-year forecasts spurred by the threat of inflation.
The company plans to increase the prices of its products again this year amid rising costs across the globe due to the ongoing COVID-19 pandemic, made worse by the rapid spread of its Omicron variant. This comes after it hiked the prices of its snacks and sodas the previous year.
PepsiCo has estimated its organic sales to rise by 6% this year, which is lower than its 10% growth (approx.) in 2021. However, despite its low forecast, the company swelled by 12.4% with a fourth quarter income of $25.25 billion which surpassed expectations of $24.24 billion.
©Photo: ft.com
