PepsiCo, Inc. (NASDAQ:PEP) stock rose 0.053% (As on July 14, 11:47:43 AM UTC-4, Source: Google Finance) after the company reported quarterly earnings and revenue that topped analysts’ expectations, despite falling demand for its drinks and food. The beverage giant also raised its full-year outlook for the second consecutive quarter. Pepsi reported second-quarter net income attributable to the company of $2.75 billion, or $1.99 per share, up from $1.43 billion, or $1.03 per share, a year earlier. Packaged food companies, including PepsiCo, have hiked prices to counter a jump in costs of everything from commodities such as sugar to transportation costs caused by supply chain snags and the Russia-Ukraine war. Total cash returns to shareholders of approximately $7.7 billion, comprised of dividends of $6.7 billion and share repurchases of $1.0 billion. PEP in the second quarter of FY 23 has reported the adjusted earnings per share of $2.09, beating the analysts’ estimates for the adjusted earnings per share of $1.96, based on a survey of analysts by Refinitiv. The company had reported the adjusted revenue growth of 10.4 percent to $22.32 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $21.73 billion. The company’s organic revenue, which strips out the impact of acquisitions and divestitures, rose 13% in the quarter. But the company’s volume fell as higher prices for its snacks and drinks hurt demand. Volume, which excludes pricing and currency fluctuations, dropped 3% for Pepsi’s food divisions and 1% for its beverages. Pepsi is planning to return to its usual pricing strategy the rest of the year. Moreover, Quaker Foods North America’s volume shrank 5% in the second quarter, and Pepsi’s North American beverage unit reported volume fell 4.5% during the period. However, Frito-Lay North America was one bright spot, reporting 1% volume growth. The company said brands like Doritos and Ruffles saw double-digit revenue growth. Pepsi has been introducing new packaging sizing, adding its “Flamin’ Hot” flavor to brands across the division and launching Frito-Lay Minis to keep its snacking sales high. Pepsi’s spending on advertising and marketing across its portfolio rose by double digits during the quarter. For 2023, Pepsi now expects 10% organic revenue growth, up from its prior forecast of 8%. The company also hiked its core constant currency earnings outlook to 12% growth from its previous expectation of 9%. It estimated annual core earnings per share of $7.47, compared with earlier expectation of $7.27.

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