As consumers venture out in the midst of the pandemic, PepsiCo sees big profits.
PepsiCo (PEP) reported a 20.5 percent increase in net sales for the second quarter, owing to increased consumer demand for snacks and beverages during the pandemic.
The company’s net income increased to $2.36 billion, or $1.70 per share, from $1.65 billion, or $1.18 per share, a year before. $19.2 billion in revenue was generated.
PepsiCo saw a 15 percent rise in volume in its drinks division, which resulted in significant earnings. Sales to restaurants, stadiums, and college campuses doubled for the quarter, up from 7% a year ago, according to CNBC.
Organic revenue for the Frito-Lay North America business unit increased by 6%, while organic sales for Quaker Food North America declined by 14%. According to CNBC, Pepsi blamed the losses on increasing ingredient, freight, and labor costs.
PepsiCo also raised its full-year guidance, stating that it now aims to generate 6% organic revenue growth and 11% core constant currency EPS growth in fiscal 2021. The corporation had previously stated that it expected digital growth to be in the mid-single digits.
In a statement, PepsiCo Chairman and CEO Ramon Laguarta stated, “Moving forward, we remain focused on winning in the marketplace and establishing competitive advantages that will position us well as consumer habits and preferences evolve over time.”
On April 19, Coca-Cola released its first-quarter earnings, revealing a 5% increase in net revenue to $9 billion. Organic revenue increased by 6%, but earnings per share fell by 19% to $0.52.
As of 1:28 p.m. EDT on Tuesday, PepsiCo shares were trading at $153.04, up $3.53, or 2.36 percent.