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PepsiCo said average prices for its product portfolio rose 17% from a year ago in the 3 months ending September 3 © Bloomberg

PepsiCo raised its full-year revenue forecast for the third time this year, after consumers shrugged off higher prices for soft drinks and snacks.

The company said Wednesday that average prices for its product portfolio, which includes Gatorade sports drinks and Doritos chips, were up 17% from a year ago in the three months ended Sept. 3. Global sales volumes fell only slightly lower. in Europe was offset by growth in the Latin America, Asia-Pacific and China regions.

PepsiCo now expects 2022 organic revenue, which excludes the impact of recent acquisitions or divestitures, to grow 12% over the year, versus a previous forecast of a 10% increase.

The company had already raised its revenue forecast in April and July as rising inflation prompted the group to raise prices.

The company said it now expects earnings of $6.73 per share in 2022, down from $6.63 per share previously forecast. Three months ago, the company took a cautious approach and refrained from raising its full-year guidance.

Despite updates to its revenue and earnings outlook, PepsiCo warned of a bigger-than-expected decline in earnings stemming from a strong dollar. The company had anticipated a negative currency impact on earnings of 2% for the year, but now expects it to be 2.5%.

Shares of the New York-based group rose 2% in premarket trading to $165.80.

Like rival Coca-Cola, PepsiCo has been able to pass price increases on to consumers with relatively limited resistance, even as global inflation soars.

For the 12 weeks to Sept. 3, PepsiCo posted revenue of nearly $22 billion, beating analysts’ expectations of $20.8 billion and up from $20.2 billion in the same period last year. . Earnings per share of $1.95 also beat Wall Street’s forecast of $1.84.

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