PepsiCo (NASDAQ:PEP) reported lower demand for its drinks and snacks in the second quarter but its bottom line was boosted by higher prices.
The beverage conglomerate’s 2Q revenue rose by 10% to $22.3 billion, surpassing Wall Street's forecast of $21.7 billion
PepsiCo (NASDAQ:PEP)'s net income experienced a significant increase, nearly doubling to $2.75 billion. The notable growth in net income is in contrast to the previous year when the company's profit was lower due to a $1.36 billion impairment charge.
Excluding one-time items, PepsiCo earned $2.09 per share, surpassing analysts' forecast of $1.95 per share.
Snack food volumes declined by 3% and beverage volumes dropped by 1%, but net pricing increased by 15%, marking the sixth consecutive quarter of double-digit price increases for PepsiCo.
The company raised its outlook for full-year earnings, predicting a 12% increase year-over-year rather than the 9% previously stated.
Shares of PepsiCo were up 2.6% in premarket trading on Thursday.
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