PepsiCo’s revenue rose 7% in the third quarter despite lower demand as the company continued to hike prices.
Pepsi raised prices 11% in the July-September period, the seventh straight quarter that the Purchase, New York, company has increased prices by double-digits. Sales volumes fell 2.5%.
PepsiCo has said its price hikes reflect the higher cost of ingredients like cooking oil.
The company says it’s attracting customers with new items, like Doritos Spicy Pineapple Jalapeno chips, and advertising, which is lifting brands like Gatorade.
Still, Frito-Lay North America sales volumes dropped 0.5% during the July-September period as net prices rose 8%. North American beverage sales volumes dropped 6% as prices rose 12%.
Sales volumes in Europe were flat. Sales volumes in Latin America dropped 5%.
Net pricing includes price hikes as well as changes in the mix of products sold and smaller package sizes. In prepared remarks Tuesday, PepsiCo said consumers are gravitating toward smaller packages for convenience and portion control.
Net revenue was $23.4 billion, the company said Tuesday. That was in line with Wall Street’s expectations, according to analysts polled by FactSet.
Net income for Pepsi rose 14% to $3.1 billion, or $2.24 per share. That beat the $2.15 per share that analysts had forecast.
Pepsi now expects its full-year earnings per share to increase 13%, up from previous projections of 12%, due to the strength of its sales and cost-cutting efforts.
The Associated Press contributed to this article.