PepsiCo expects revenue to grow in 2021 hoping that consumers would return to pre-pandemic lifestyles

In a hope that consumers would return to pre-pandemic lifestyles as economies reopen and COVID-19 vaccinations roll out, PepsiCo Inc expects its organic revenue to grow in 2021.

The snack and beverage giant topped Wall Street estimates for the fourth-quarter revenue as the second round of lockdowns spurred demand for its products such as Tostitos, Cheetos and Gatorade that are more suited for
at-home consumption.

The company, known for its Lay's chips and Pepsi sodas, said that it expects a mid-single digit rise in annual organic revenue and a high-single digit increase in adjusted earnings.

Organic revenue from snacks under the company's Frito-Lay North America unit rose 5 per cent in the fourth quarter while those of sodas and other beverage rose 5.5 per cent in North America, its biggest market.

Net revenue rose 8.8 per cent to $22.46 billion in the quarter ended Dec. 26, above market expectation of $21.8 billion, according to IBES data from Refinitiv.

The company also announced a 5 per cent increase in its annual dividend to be paid in June.

Rival Coca-Cola too had forecast organic revenue to rebound this year.