PURCHASE, NY (AP) — PepsiCo reported higher-than-expected revenue in the fourth quarter as higher prices and improved productivity offset continued weakness in North American demand for its snacks and drinks.
Revenue rose 5.6% to $29.3 billion in the October-December period. That was higher than the $28.9 billion Wall Street was expecting, according to analysts polled by FactSet.
Volumes for snacks like Doritos and Cheetos fell 1%, while North American beverage volumes dropped 4%, the Purchase, New York, company said Tuesday. Globally, beverage volumes rose 1% while food volumes fell 2%.
PepsiCo hiked prices by 4.5% globally during the quarter. Prices for PepsiCo beverages rose 7% in North America, while prices for the company’s snacks ticked up 1%.
PepsiCo said last February that years of double-digit price increases and changing customer preferences have weakened demand for its drinks and snacks. In July, the company said it was trying to combat perceptions that its products are too expensive by expanding distribution of value brands like Chester’s and Santitas.
Adjusted for one-time items, PepsiCo earned $2.26 per share in the fourth quarter. That was also higher than analysts expected.
