PepsiCo has upgraded its full-year guidance for fiscal year 2022 after reporting a 9.3% increase in net revenue growth during its Q1 2022 earnings call on Tuesday morning.
Like other global beverage corporations, PepsiCo faced inflationary pressures during the first quarter. However, the Purchase, New York-based conglomerate was still able to manage rising input costs to post +13.7% organic revenue growth.
In a press release, PepsiCo Chairman and CEO Ramon Laguarta praised the company’s employee performance in Q1 “while operating in a dynamic and complex environment due to the ongoing deadly conflict in Ukraine.”
“The humanitarian impact is especially tragic and beyond what words can describe,” said Laguarta in a press release. “Our priority continues to be the safety, well-being, and security of our Ukrainian associates and we join all those praying for peace.”
Within Pepsi’s Beverages North America division, organic revenue was up 13%, sitting between Frito Lay (+14%) and Quaker Foods North America (+11%).
The company has updated its full-year guidance from 6% to 8% organic revenue growth for the fiscal year 2022. PepsiCo is maintaining core constant currency EPS of 8%. Total cash return to shareholders is expected to be around $7.7 billion, split between dividends and share repurchases.
“For the first quarter, we delivered strong results which reflect our presence in growing, global categories and the investments we have made towards becoming an even Faster, even Stronger, and even Better company with PepsiCo Positive (pep+) at the center of everything we do,” said Laguarta in a press release. “Given the strength and resilience of our businesses to date, while reflecting higher than expected input cost inflation for the balance of 2022, we now expect our full-year organic revenue to increase 8 percent (previously 6 percent) and we continue to expect core constant currency earnings per share to increase 8 percent.
He continued, “Looking ahead, we will focus on controlling what we can, such as enhancing our focus on productivity and sharpening our revenue management capabilities, while also continuing to make the necessary long-term investments to fortify our businesses and win in the marketplace.”