PepsiCo said it will likely raise prices again early next year as it grapples with escalating supply chain challenges that have hit everything from a lack of sports packaging to a lack of truck drivers.
The company’s chief financial officer, Hugh Johnston, said that his company had to “scramble” to overcome a shortage of regular and sports packaging over the past few months as demand for its drinks increased in restaurants, theaters and theaters after the lifting of pandemic restrictions, fulfilling its previous forecast in April of sales growth. . Read more [PepsiCo is betting that reopening facilities after vaccinations will blow soft drink sales].
PepsiCo has already raised the prices of its soft drinks and snacks over the past few weeks, to reflect the strategy in which the packaged food industry is operating after higher prices for raw materials slashed profit margins.
PepsiCo’s UK business has suffered from a shortage of truck drivers in the post-Brexit phase due to immigration laws and a lost year of driver testing and training, but Johnston does not expect a shortage of Pepsi products from the market, saying the company will be in better shape by the end of the fourth quarter.
PepsiCo’s core revenue grew 9% during the third quarter, with 5% coming from sales of expensive products, and costs for the company increasing by 10% due to greater exposure to distribution and marketing expenses.
As for net revenues, it grew by 11.6% to record $20.19 billion during the quarter ending on September 4, exceeding analysts’ estimates, which were only 19.39 billion, and PepsiCo expects core revenues to grow during the fiscal year 2021 by 8% compared to its previous forecast of only 6%. As for the stock market, PepsiCo’s share witnessed a significant increase in pre-market trading.