PepsiCo: reduces FY EPS target due to inflation

(CercleFinance.com) - On Tuesday PepsiCo cut its FY 2022 earnings target, in particular citing the impact of higher commodity prices.


The US soft drinks giant said that it is now expecting EPS of 6.63 dollars this year, below its initial January forecast of 6.67 dollars.

In a statement, the group said that the reduction in its estimate was due to a higher-than-expected inflation in production costs.

The company reported a rise in Q1 net profit to 4.4 billion dollars, or 3.06 dollars per share, a long way ahead of the 1.7 billion dollars, or 1.24 dollars per share, a year ago.

Meanwhile, sales rose 9.3% to 16.2 billion dollars, driven by strong business in Latin America.

Shares in the maker of Pepsi-Cola and Tropicana fruit juices were down about 0.6% in pre-market trading on the news of these revised forecasts.


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