PepsiCo expects revenue to grow in 2021 as vaccines take effect
PepsiCo Inc said on Thursday it expects organic revenue to grow in 2021 on hopes that consumers would return to pre-pandemic lifestyles as economies reopen and COVID-19 vaccinations roll out.
The snack and beverage giant also topped Wall Street estimates for fourth-quarter revenue as the second round of lockdowns spurred demand for its products such as Tostitos, Cheetos and Gatorade that are more suited to at-home consumption.
The company, known for its Lay’s chips and Pepsi sodas, said it expects a mid-single digit rise in annual organic revenue and a high-single digit increase in adjusted earnings.
Rival Coca-Cola too had forecast organic revenue to rebound this year.
Organic revenue from snacks under the company’s Frito-Lay North America unit rose 5% in the fourth quarter, while those of sodas and other beverage rose 5.5% in North America, its biggest market.
Net revenue rose 8.8% to $22.46 billion in the quarter ended Dec. 26, above market expectation of $21.8 billion, according to IBES data from Refinitiv.
The company also announced a 5% increase in its annual dividend to be paid in June.
