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PepsiCo Beats Q1 Profit Forecast, Lifts 2022 Sales Outlook On Snacks Strength

Frito Lay sales growth once gain drove PepsiCo's revenue gains despite CEO Ramon Laguarta seeing "higher than expected input cost inflation for the balance of 2022."

Updated at 12:25 pm EST

PepsiCo  (PEP) -  posted better-than-expected first quarter earnings Tuesday, while boosting its full-year revenue forecast, as the group's Frito Lay snacks division continues to drive topline growth 

PepsiCo said core earnings for the three months ending in March were pegged at $1.29 per share, up 6.6% from the same period last year and 7 cents ahead of the Street consensus forecast. 

Group revenues, PepsiCo said, rose 9.3% to $16.2 billion, against topping analysts forecasts of a $15.52 billion tally. North American revenues at Frito Lay, its snacks division, came in at $4.84 billion. Beverages revenues were up 5.5% at $5.35 billion.

Looking into the 2022 financial year, PepsiCo said it sees organic revenue growth of around 8%, topping its previous forecast of 6%, with core earnings growing by 8%. 

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“I am very proud of how our people and business have performed while operating in a dynamic and complex environment due to the ongoing deadly conflict in Ukraine," said CEO Ramon Laguarta. "The humanitarian impact is especially tragic and beyond what words can describe. Our priority continues to be the safety, well-being, and security of our Ukrainian associates and we join all those praying for peace.” 

“Given the strength and resilience of our businesses to date, while reflecting higher than expected input cost inflation for the balance of 2022, we now expect our full-year organic revenue to increase 8% (previously 6%) and we continue to expect core constant currency earnings per share to increase 8%," he added.

PepsiCo shares were marked 0.4% higher in mid-day tradingfollowing the earnings release to change hands at $174.30 each, a move that would nudge the stock into positive territory for the year.

Earlier this week, Coca-Cola  (KO) -  stronger-than-expected first quarter earnings of 64 cents per share, with revenues rising 16.4% to $10.5 billion, but only confirmed its full-year profit and sales forecasts, amid what the iconic drinks group called a "highly dynamic and uncertain operating environment".