To combat the falling demand for its products and stagnant sales volumes, PepsiCo Inc. (NYSE:PEP) decided to charge higher prices and cut expenses. It proved to work out as PepsiCo Inc.’s quarterly profit beat Wall Street estimates and boosted its annual forecast. Sales in its Frito-Lay increased 3% and sales from North American beverage units increased 2% to $5.24 billion. Volume sales were flat as net pricing increased 1%.
In total, in the quarter ending in June, net income/profit of PepsiCo rose to $2.11 billion, or $1.46 per share, from $2.01 billion, or $1.38 per share, a year earlier.
Revenue itself rose 2.1% to $15.71 billion which was above analyst’s expectations of earnings at $1.40 a share, or revenue of $15.60 billion.
The company also lifted its adjusted earnings-per-share outlook for the year to $5.13 from $5.09, as it anticipates gains from foreign markets.
Shares of PepsiCo have climbed more than 9% so far this year since its closing on Monday. In premarket trading, the stock edged up 0.5% to $114.79 during premarket trading Tuesday. However, in the afternoon, it is down around 1% to $113.50 as investors stay poised.