Lower volumes, much higher sales: this is how PepsiCo defies the cost-of-living crisis

“We can raise prices, consumers keep buying our products anyway”: that pretty much sums up PepsiCo‘s quarterly results. The FMCG giant sold 10.4 % more in the second quarter, even though sales volumes dropped slightly.

Forecasts up

Despite declining sales volumes, owner of brands such as Pepsi, Lay’s and Quaker was able to report a double-digit rise in turnover: in the second quarter, sales went up 10.4 % to 22.32 billion dollars (20 billion euros). Including the first quarter, the rise is 10.3 %. Organic growth is even 13 % and 14 %, respectively.

Profits are also going up: operating profit advanced 76.2 % to 3.66 billion dollars; net profit even almost doubled to 2.77 billion dollars. This is a big boost, as both indicators were down sharply in the first quarter – so much so that for the first half of the financial year operating profit and net profit are still lower than last year (by 14 and 18 % respectively). Europe, in particular, is doing markedly better than in the first quarter.

“We are very pleased with our performance for the second quarter as our business momentum remains strong. As a result, we now expect our full-year organic revenue to increase 10 % (previously 8 %)”, CEO Ramon Laguarta said in a press release. That performance also gives the CEO confidence PepsiCo will “become an even Faster, even Stronger, and even Better organization”.