PepsiCo, Inc. (NASDAQ:PEP) stock rose 1.18% (As on October 10, 11:26:23 AM UTC-4, Source: Google Finance) after the company has posted better-than-expected core income in the third quarter and raised its full-year profit guidance, as the beverage maker was boosted by higher pricing that helped offset a drop in volumes. The company has planned “modest” price hikes next year as demand held up despite multiple increases that prompted the snacks and beverages giant to raise its 2023 profit forecast for a third straight time. Average prices jumped 11% in the quarter ended Sept. 9. The profit margin gives PepsiCo the room to either keep the prices the same or maybe even reduce them but clearly in the short term the company has not gotten to that point where it feels the need to reduce prices drastically. Moreover,  Frito-Lay North America and Quaker Foods North America saw a GAAP reported % change of 7% and 5% respectively. PepsiCo Beverages North America reported an 8% GAAP reported % change, with a 2% impact due to foreign exchange translation. The Latin America segment reported a significant 21% GAAP reported % change, despite a 13% impact due to foreign exchange translation. The company’s large snacks business, which sells everything from Doritos to Cheetos, has helped counter falling demand in the beverages unit. PEP in the third quarter of FY 23 has reported the adjusted earnings per share of $2.25, beating the analysts’ estimates for the adjusted earnings per share of $2.16. The company had reported the adjusted revenue growth of 6.7 percent to $23.45 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $23.38 billion. This was driven in part by an 11% rise in effective net pricing, which reflects the impact of discrete pricing actions, sales incentives and the mix resulting from selling products in different package sizes and countries. Organic volumes, meanwhile, contracted by 2.5%. PepsiCo forecast fiscal 2023 core earnings per share of $7.54, up from $7.47 earlier, while maintaining its annual organic revenue growth forecast at 10%. The Company continues to expect total cash returns to shareholders of approximately $7.7 billion, comprised of dividends of $6.7 billion and share repurchases of $1.0 billion. For fiscal year 2024, the company expects to deliver results towards the upper end of its long-term target ranges for both organic revenue and core constant currency EPS growth.

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