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Pepsi scores a big profit on the back of higher prices

Bottles of Pepsi for sale in a cooler. Price hikes for Pepsi products boosted the company’s bottom line. (Photo by David Paul Morris/Bloomberg via Getty Images)

New York (CNN) — Price hikes for Pepsi products boosted the company’s bottom line, despite a decline in sales, according to the company’s third-quarter earnings, released Tuesday.

The snack and beverage giant said it increased prices globally by 11% on average, helping nudge revenue higher than analysts’ expectations, despite PepsiCo’s volume falling 2.5%. Net sales for the third quarter rose nearly 7% to $23.45 billion.

As a result, PepsiCo hiked its full-year forecast, the third consecutive quarter it has done that. The company now expects earnings per share to be $7.54, an increase from $7.20 per share when it first released the forecast in February.

Shares of PepsiCo (PEP) rose nearly 2% in premarket trading.

Similar to other food companies, Pepsi has increased prices to mitigate inflation. However, there’s been some improvement for US consumers, with grocery price increases slowing down in August, up just 0.2% for the month. The September Consumer Price Index will provide a new reading on inflation on Thursday.

Pepsi said that in North America, sales for Gatorade, Bubly sparkling water and sodas also rose. The company also announced that it plans to relaunch the Baja Blast, a fan-favorite soda it created with Taco Bell, in three different varieties including a zero sugar version.

Consumers should also expect to see the new Pepsi logo, unveiled last March, on its products soon.