“Oh, so refreshing!”, and this time it’s not just about the taste. PepsiCo’s (PEP) revenues for the third quarter of 2021 were a refreshing update after supply chain concerns were hovering over the company’s financial health. PepsiCo topped estimates by posting a $20.2b revenue in Q3, up 11.6% compared to 12 months ago. This number was largely driven by the company’s total organic sales, which were up 9%, with gains across all geographies and segments. The beverage sales were up 8%, while the food and snack volume was up 4%. Operating profit surged 5%.
The company now expects close to an 8% organic revenue growth, compared to the previous estimate of 6%. This is good news for investors, as PepsiCo’s earnings per share in Q3 rose 3% to $1.6. After the financial numbers came out, the company’s shares jumped close to 1% in early trading.
why it matters
PepsiCo's solid financials take on an even more important significance after the industry has been affected by inflationary pressures across labor, transportation, and commodities.