PepsiCo Inc raised its full-year earnings forecast on Tuesday, betting on accelerating demand for its sodas in theaters, restaurants and stadiums as they pull back crowds following the easing of Covid-19 restrictions.
The company's shares rose nearly 2 per cent premarket.
The vaccine-aided reopening of public venues across the United States following a year of closures or strict capacity limits helped boost sales in PepsiCo's North America Beverage unit 24 per cent in the second quarter.
The company said it expects fiscal 2021 core earnings per share to increase 11%, compared with prior forecast of a high-single-digit increase.
Net revenue rose 20.5 per cent to $19.22 billion in the quarter ended June 12, above expectations of $17.96 billion, according to IBES data from Refinitiv.
PepsiCo said it would also expand a program to automate more manufacturing processes and optimize its supply chain, resulting in expected pre-tax charges of about $3.15 billion. The program's prior cost estimate was about $2.5 billion.
(Published 13 July 2021, 11:27 IST)
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