PepsiCo reported a huge jump in its quarterly profit on Friday, despite the fact that the company is continuing to increase prices.
Gatorade maker Quaker Oats, Lay's, and Quaker Oats have also increased their earnings forecasts for the remainder of the year. This has pushed its stock higher.
In the second quarter that ended on June 17, PepsiCo reported a 10 percent increase in revenue to $22.3 billion and a profit nearly doubled from last year to $2.7 billion. PepsiCo has increased its revenue forecast for the year to 10 percent, up from 8 percent.
The results of the third quarter exceeded expectations. Consumers are struggling with rising prices, while policymakers consider their next steps in their attempts to control inflation.
PepsiCo's earnings increased last quarter but the number of products sold decreased. Pepsi product prices have increased by double-digit percents over the last six quarters. The company also reported that sales volume has decreased for the last three quarters.
Pepsi prices were overall 15 percent higher than the same period last year. Pepsi’s European division saw a 20 percent increase in prices. Food prices have risen in Europe.
Attracting particular scrutiny from policymakers and economists
Who have stated that the high level of inflation in China is due to corporate profits.
Ramon Laguarta said this on a Thursday morning call with analysts.
Mr. Laguarta said that the low unemployment rate in the United States as well as around the globe is the reason why consumers continue to buy Pepsi. Data
Released last week
The U.S. employment market is cooling, but still strong.
The latest data on inflation released by the United States showed that food prices, as well as consumer prices, have increased.
The rate of increase has been slower.
Though we are still far from the Federal Reserve’s goal. Food prices increased 5.7 percent overall in the 12 months to June.
PepsiCo shares gained about 1 percent on Thursday. Food and beverage giant PepsiCo is among the first companies that report quarterly earnings, so it can be used as a barometer to gauge how other companies will perform. According to FactSet estimates, companies in the S&P 500 will report a 7 per cent decline in profits in the second quarter.
Coca-Cola will announce its earnings in the last week of this month. On Friday, several major banks will announce their results.