Pepsi was just the latest company to reveal inflation concerns. Its Stock Rose anyway.

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PepsiCo

the stock is on the rise after the soft drink company reported better-than-expected earnings.

PepsiCo reported adjusted earnings of $ 1.79 per share, beating expectations of $ 1.73 per share, on sales of $ 20.19 billion, beating expectations of $ 19.39 billion. Pepsi also said organic sales will increase 8% in 2021, down 6% from its previous forecast.

“Our strong year-to-date results demonstrate that the investments we’ve made to become a faster, stronger and better business are working,” said CEO Ramon Laguarta.

An example of this investment: PepsiCo recently launched the pep + initiative. It is an effort to become a more transparent and sustainability-oriented company. The effort includes goals such as achieving net zero emissions by 2040, shifting the portfolio to plant-based proteins, and reducing the use of non-renewable plastics.

“As the preferences of society and consumers continue to evolve, we remain focused on providing positive product choices to meet different needs and create competitive advantages in the market,” the management commented.

That said, PepsiCo has admitted to facing inflationary pressures and supply chain disruptions. Core operating profit for its oatmeal brand, Quaker Foods North America, fell 27% to $ 106 million, from $ 145 million in the last year quarter. PepsiCo’s Frito-Lay snack brand was also hit by these pressures, although organic sales rose 5%.

Nonetheless, it was a good quarter for the company. PepsiCo stock gained 1% on Tuesday. Its shares had risen 4.4% this year through Monday’s close, while the

S&P 500
had gained 16.1% and the

Dow Jones Industrial Average
had increased by 12.5% ​​over the same period.

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