PepsiCo expects revenue to grow in 2021 as vaccines take effect

Bottles of Pepsi are pictured at a grocery store in Pasadena, California, U.S., July 11, 2017. REUTERS/Mario Anzuoni

(Reuters) – PepsiCo Inc said on Thursday it expects organic revenue to grow in 2021 on hopes that consumers would return to pre-pandemic lifestyles as economies reopen and COVID-19 vaccinations roll out.

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

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

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

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

Net revenue rose 8.8% 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% increase in its annual dividend to be paid in June.

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