PepsiCo has raised its 2021 earnings forecast after recovering foodservice and quick-service restaurant (QSR) markets fuelled revenue growth in the second quarter.

Helped by double-digit increases in its North American beverages, Latin America, and European businesses, PepsiCo’s total revenue for the quarter rose 20.5 per cent against the same quarter in 2020.

The company now expects full-year organic revenue to increase 6 per cent and core constant currency earnings per share (EPS) to rise 11 per cent, said chairman and chief executive Ramon Laguarta.

PepsiCo had previously forecast mid-single-digit growth for organic revenue, and high-single-digit growth for core constant currency EPS.

PepsiCo Beverages North America fared best of all, up 21 per cent on the same quarter in 2020. Revenue in Latin America jumped 16 per cent, while the Europe business and the combined Africa, Middle East and South Asia business were both up 15 per cent.

A 6 per cent revenue increase was posted by the Asia Pacific, Australia, New Zealand and China Region. PespiCo’s Frito-Lay North America business also improved by 6 per cent.

A 14 per cent drop in revenue at Quaker Foods North America can be attributed to a boom in sales during the second quarter of 2020, as consumers stocked up on packaged food at the start of the pandemic, analysts claimed.

While foods and snacks overall experienced modest volume increases during the latest quarter, most of the volume growth came in beverages – reflecting PepsiCo’s significant presence in the QSR sector.

Consistent with its previous guidance for 2021, the company continues to expect a core annual effective tax rate of approximately 21 per cent; and total cash returns to shareholders of approximately $5.9 billion.

PepsiCo also used its results to announce both an expansion and extension of its 2019 Productivity Plan until the end of 2026.

The expansion of the programme reflects further initiatives to leverage new technology and business models to “further simplify, harmonise and automate processes”, the company said.

These included the re-engineering of its go-to-market and information systems, including deploying the right automation for each market; and simplifying the PepsiCo organisation while optimising its manufacturing and supply chain footprint.

As a result, it is aiming to deliver at least $1bn in annual productivity savings up to and including 2026.

“We are pleased with our second quarter results as we delivered very strong double-digit net revenue and EPS growth,” said Laguarta.

“Our results give us confidence that the investments behind our Faster, Stronger and Better framework are working – as we invest in our brands, supply chain and go-to-market systems, manufacturing capacity, capabilities and culture, and our society by integrating purpose into everything we do.

“Moving forward, we remain focused on winning in the marketplace and building competitive advantages that will position us well as consumer habits and preferences evolve over time.”