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By Jennifer Maloney
PepsiCo Inc. doesn’t expect people to stop snacking on Cheetos anytime soon.
The company said it expects a gradual rebound in its soda business as Covid-19 vaccines roll out and consumers return to restaurants and other venues, while the growth in its food business will continue as people will continue to work – and snack – at home. .
“I think this will change slowly over time,” said Hugh Johnston, chief financial officer of PepsiCo, in an interview. “I don’t expect any dramatic change.”
One of the habits Mr Johnston said he expects people will keep, even if life returns to normal, is eating breakfast at home – a trend that has boosted the activities of the Quaker Oats company. “What we have seen is that people love breakfast at home and I think they will probably continue in that direction,” he said.
Sales of Cheetos, Tostitos, oatmeal and pancakes propelled the snack and drink giant through the coronavirus pandemic, offsetting soda sales weakened by the closure of restaurants, cinemas and sports stadiums. The company’s beverage sales volume in North America declined 1.5% in 2020 and remained stable in the fourth quarter.
The company offered an outlook for 2021 on Thursday, saying it expects organic revenue to rise by a mid-single-digit percentage this year and its adjusted profit to rise by a high single-digit percentage. PepsiCo also said it will increase its annualized dividend to $ 4.30 per share, from $ 4.09 per share, starting with the dividend payable in June.
PepsiCo’s organic revenue increased 5.7% in the last quarter.
Write to Jennifer Maloney at [email protected]
(END) Dow Jones News Wire
February 11, 2021 at 9:03 am ET (2:03 pm GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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