PepsiCo expect to raise prices due to can shortages
PepsiCo expects to raise its price next year due to the shortages of cans and bottles globally.
Chief Financial Officer Hugh Johnston told Reuters that PepsiCo had to “scramble” to overcome a shortage of cans and Gatorade bottles.
It came as a result of increased demand for beverages following the lifting of coronavirus restrictions around the world.
“I do expect there will probably be some price increases in the first quarter of next year as well, as we fully absorb and lock down the impact of commodity inflation,” Johnston said, adding that he expects most supply-chain disruptions to moderate by the end of 2021.
Net income for the quarter ended Sept. 4 came in at $2.22 billion, or $1.60 per share. That’s down from $2.29 billion, or $1.65 per share, a year earlier.
Excluding items, the food and beverage giant earned $1.79 per share, topping the $1.73 per share expected by analysts surveyed by Refinitiv.
Net salesrose 11.6% to $20.19 billion, beating expectations of $19.39 billion. The company’s organic revenue, which strips out the impact of acquisitions and divestitures, climbed 9% in the quarter.
CEO and chairman Ramon Laguarta said: “We’re becoming much more competitive in growth, both in our categories and in most of the market where we operate.
“That’s the consequence of the investments we’ve been making in brands, good innovation, go-to-market capacity, new capabilities, and talent.
“We’re seeing momentum across the business, and we’re seeing that momentum continuing into the rest of the year. That’s why we are elevating our guidance for top line and we think that momentum will continue well into 2022.”