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The
company's shares rose 2% to $152.25 in premarket trading as the
vaccine-aided reopening of public venues across the United
States helped boost North America Beverage sales 24% in the
second quarter.
Net revenue from beverage sales to schools, restaurants,
stadiums and other such businesses in North America doubled in
the quarter. Beverage sales overseas also improved, with PepsiCo
saying it recorded double-digit organic revenue increases in
emerging markets like Mexico, Brazil and India.
Overall net revenue rose 20.5% to $19.22 billion in the quarter
ended June 12, above expectations of $17.96 billion, according
to IBES data from Refinitiv.
Excluding items, the company earned $1.72 per share, above
estimates of $1.53 per shares.
PepsiCo's Frito-Lay North America snacks unit also reported a 7%
increase in net revenue, despite expectations that business
would slow as people ventured outside their homes again and
spent less on snacks.
The company said it expects fiscal 2021 core earnings per share
to increase 11%, compared with prior forecast of a
high-single-digit increase. It forecast full-year organic
revenue to rise 6%.
PepsiCo said it would also expand a productivity program that
would introduce more automation in different markets and
optimize its manufacturing processes and supply chain, resulting
in expected pre-tax charges of about $3.15 billion. The
program's prior cost estimate was about $2.5 billion.
(Reporting by Uday Sampath in Bengaluru; Editing by Maju Samuel
and Anil D'Silva)
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