PepsiCo (NASDAQ:PEP) on Tuesday reported quarterly earnings and revenue that topped analyst expectations, as consumers paid more for their Doritos, Quaker oatmeal and Gatorade. On the heels of its strong performance, the company raised its full-year forecast for organic revenue growth.
Shares of the company were down 62 cents in early trading to $173.12. Pepsi reported first-quarter net income attributable to the company of $4.26 billion, or $3.06 per share, up from $1.71 billion, or $1.24 per share, a year earlier.
The food and beverage giant reported a $193 million impairment charge after taxes as it tries to discontinue or reposition some of its juice and dairy brands in Russia. The charge dragged down its earnings by 14 cents per share.
An additional impairment charge of $241 million after taxes related to the Russia-Ukraine conflict weighed on its earnings by 17 cents per share.
Excluding the sale of its juice business, the Russian impairment charge and other items, the company earned $1.29 per share, topping the $1.23 per share expected by analysts.
Net sales rose 9.3% to $16.2 billion, beating expectations of $15.56 billion. Organic revenue climbed 13.7% in the quarter, fueled largely by higher prices.
Frito-Lay North America saw volume increase just 1% in the quarter, although the segment’s organic revenue climbed 14%. The company said Doritos, Lay’s, Ruffles and Cheetos all saw double-digit revenue growth.
