PepsiCo Inc. (Nasdaq: PEP) today reported results for the third quarter of 2021, ended Sep. 4. Pepsi's net income dropped to $2.22 billion, or $1.60 a share, from $2.29 billion, or $1.65 per share, compared with the same quarter last year. Net sales in the third quarter rose 11.6% to $20.19 billion, beating forecasts of $19.39 billion. The beverage and snack giant's organic revenue rose 9% in the quarter.
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“We are pleased with our results for the third quarter as we delivered very strong net revenue growth while carefully navigating a dynamic and volatile supply chain and cost environment. Given our year-to-date performance, we now expect our full-year organic revenue to increase approximately 8% and core constant currency earnings per share to increase at least 11%,” said PepsiCo chairman and chief executive Ramon Laguarta.
Despite higher costs and disruptions in the supply chain, as well as inflationary pressure for labor, commodities and transportation, PepsiCo raised its full-year forecast. For the full year, Pepsi expects its organic revenue to increase 8%, up from its prior forecast of 6% growth.
Pepsi’s North American beverage business saw organic revenue growth of 7% for the third quarter. Frito-Lay reported an organic revenue increase of 5% as favorable pandemic snacking habits continued. Quaker Foods North America saw its organic revenue rise 1%. It was the only segment to report shrinking volume, which excludes the impact of price changes, and reported the largest drop in operating profit.
“Our strong year-to-date results demonstrate that the investments we have made towards becoming a Faster, Stronger, and Better company are working," Laguarta said. "To further complement and enhance our strategic framework, we recently introduced PepsiCo Positive (pep+), a fundamental end-to-end transformation of what we do and how we do it to create growth and shared value with sustainability and human capital at the center."