PepsiCo, Inc. (NASDAQ:PEP) stock fell 0.83% (As on April 26, 12:04:43 AM UTC-4, Source: Google Finance) after the company has hiked its annual profit guidance after price rises helped the U.S. food and beverage company overcome a jump in input expenses to post better-than-expected first-quarter earnings. The company behind brands like Pepsi fizzy drinks and Frito-Lay potato chips said it now expects to deliver 9% core constant currency earnings per share growth in its 2023 financial year, up from its prior outlook of 8%. Organic revenue is also seen rising by 8%, instead of the previous projection of 6%. The company’s average prices jumped 16% in the first quarter. PEP in the first quarter of FY 23 has reported the adjusted earnings per share of $1.50, beating the analysts’ estimates for the adjusted earnings per share of $1.38, according to Bloomberg consensus estimates. The company had reported the adjusted revenue growth of 10 percent to $17.85 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $17.22 billion. Sales in the North America beverage unit, PepsiCo’s largest business and which houses 7UP and Gatorade, rose 8% in the quarter. The North America and International businesses delivered 14 percent and 15 percent organic revenue growth, respectively. The global beverages and convenient foods businesses delivered 12 percent and 16 percent organic revenue growth, respectively. Core gross profit increased 11 percent and core gross margin expanded 50 basis points while core operating profit increased 17 percent and core operating margin expanded 95 basis points. In addition, Frito-Lay’s core operating profit increased 24 percent and core operating margin expanded 190 basis points and reflects a strong double-digit increase in advertising and marketing spend and planned business investments. Quaker Foods North America delivered 10 percent organic revenue growth in the first quarter with double-digit net revenue growth in the oatmeal, lite snacks, snack bars, grits and cookie categories, and mid-single-digit net revenue growth in the ready-to-eat cereal and pancake mixes and syrup categories. For 2023, the Company continues to expect a core annual effective tax rate of 20 percent; and 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 2023, North America beverage and convenient foods businesses to remain resilient. The company is expanding the scope of the global business services model to deliver labor productivity, unlock efficiencies, and boost effectiveness in key processes.

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