PepsiCo Inc (PEP.O) on Thursday forecast annual profit below analysts’ estimates, signaling that multiple price hikes were beginning to dampen demand for its sodas and snacks amid a cost-of-living crisis.
There has been a shift in consumer spending with rising inflation forcing consumers to turn to cheaper alternatives.
Many U.S. companies including PepsiCo and Procter & Gamble Co (PG.N) have also been raising prices to combat inflationary pressures and supply chain costs that have been further aggravated by the Russia-Ukraine conflict.
PepsiCo raised its annualized dividend by 10% to $5.06 per share.
The company’s average prices jumped 16% for the fourth quarter, while organic volume slipped 2%.
PepsiCo said it expects fiscal 2023 core constant currency earnings of $7.20 per share, compared with estimates of $7.28, according to IBES data from Refinitiv.
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