Moneycontrol

Budget 2023Budget 2023
Register Now : Nifty Banker 3.0 | India's First Retail Index Traders Online Conference.
Budget 2023
Budget 2023
you are here: HomeNewsBusiness

PepsiCo says revenues jumped after raising prices

Overall, PepsiCo said revenues rose 9.3% to $16.2 billion in the first quarter.

April 26, 2022 / 11:11 PM IST
Bottles of Pepsi are pictured at a grocery store in Pasadena, California, U.S (File image: Reuters)

Bottles of Pepsi are pictured at a grocery store in Pasadena, California, U.S (File image: Reuters)

Thanks to double-digit percent increases for the prices of many of its popular snack and beverage products, PepsiCo Inc. saw a big jump in revenues in the quarter.

Overall, PepsiCo said revenues rose 9.3% to $16.2 billion in the first quarter. But the bulk of that growth was fueled by price increases in the three-month period. Its Frito-Lay North American division, home to Lay’s, Doritos and Cheetos chips, saw volumes grow a modest 2% while pricing soared 12% in the quarter. Likewise, a 12% increase in prices helped offset a 1.5% decline in volumes in its Quaker Foods group.

Like other food and beverage companies, PepsiCo is walking a fine line, determining how much it can raise prices on its key products before consumers balk and either buy less or seek out cheaper substitutes. Still, acknowledging that consumers are facing higher prices in all aspects of their lives, executives said they would be watching behaviors closely as they weigh further price increases for the year.

“We think the consumer is very early in the process of adjusting to the new inflationary environment,” CEO Ramon Laguarta said on a call Tuesday morning with Wall Street analysts and investors. He added that the company's primary objective was to “keep consumers with our brands.”