PepsiCo Inc (NASDAQ:PEP) raised its earnings forecast for 2021 on Tuesday, betting on rising demand for carbonated drinks in cinemas, restaurants and stadiums as viewers return after the easing of restrictions imposed because of COVID-19.
The company's shares, already up about 1% in the first half of 2021, added 2% to 152.25 dollars in over-the-counter trading.
The reopening of public establishments in the United States, thanks to vaccinations after a year of downtime or strict capacity restrictions, helped PepsiCo's beverage division sales in North America increase by 24% in the second quarter.
Overseas beverage sales also grew, with PepsiCo reporting double-digit organic revenue growth in emerging markets such as Mexico, Brazil and India.
Total net revenue rose 20.5% to 19.22 billion dollars for the quarter ended June 12, above expectations of 17.96 billion ollars, according to IBES Refinitiv.
Earnings excluding some balance sheet items were 1.72 dollars per share, beating estimates of 1.53 dollars per share.
It is worth noting that PepsiCo expects core earnings per share in fiscal 2021 to increase by 11% from its previous forecast of a single-digit increase.