(Reuters) -PepsiCo Inc said on Thursday it expects organic revenue growth to pick up pace in the second quarter, betting on higher soda sales from restaurants that are gradually reopening following the speedy rollout of coronavirus vaccines.

A pandemic winner, the company has been benefiting from homebound consumers stocking up their pantries with salty chips, sodas and oatmeal and posted first-quarter revenue that beat Wall Street expectations.

“We are assuming that vaccination efforts will accelerate and population mobility will improve,” Chief Executive Officer Ramon Laguarta said.

“This should benefit the foodservice channel as and when travel, lodging, dining, education, and entertainment trends accelerate.”

PepsiCo said it expects the North American beverage business to “perform well” and the snack unit to “remain resilient.” The company, however, stuck to its organic revenue growth and earnings forecast for the year.

Sales of snacks under the company’s Frito-Lay North America unit rose 4% in the quarter ended March 20, while those of sodas and other beverages rose 5% in North America, its biggest market.

Net revenue rose 6.8% to $14.82 billion, above analysts’ average estimate of $14.55 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose to $1.71 billion, or $1.24 per share, from $1.34 billion, or 96 cents per share, a year earlier.

Reporting by Nivedita Balu in Bengaluru; Editing by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/article/us-pepsico-results/pepsico-bets-on-higher-soda-sales-as-restaurants-reopen-idUSKBN2C21B9

You May Also Like

UK sees record jump in employee numbers in May

The number of employees on British company payrolls surged by a record amount in May as COVID restrictions eased and pubs and restaurants resumed indoor service, though it still remains more than half a million below its pre-pandemic peak.

Is AstraZeneca PLC’s COVID-19 vaccine safe?

In response to reports that a woman died of an unusual blood clot after being vaccinated, Justin Trudeau said on Wednesday that AstraZeneca PLC’s COVID-19 vaccine is safe and that Canadians must have faith in it. According to reports, Francine Boyer, 54, would be the first Canadian…

Following the COVID-19 vaccine exchange with Britain, Australia’s Prime Minister has called for a faster reopening!

Prime Minister Scott Morrison announced on Friday that Australia had already managed…