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Price hikes lifted PepsiCo’s profits in the third quarter, but the company says those increases are likely to moderate in the coming year.

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.

The higher prices took a toll on demand, with sales volumes down 2.5%.

PepsiCo said some of that volume decline is strategic.

The company said it has been shrinking package sizes to meet consumer demand for convenience and portion control.

Units are growing much faster than volume, PepsiCo Chairman and CEO Ramon Laguarta said Tuesday in a conference call with investors.

But there is also some consumer pushback on prices. Consumers are looking for value and, in some cases, are trading down to cheaper stores.

I do think that we see the consumer right now being more selective, PepsiCo’s Chief Financial Officer Hugh Johnston said Tuesday on a conference call with investors.

Still, Johnston said convenience store sales and food service sales, which usually weaken in times of high consumer stress, are strong.

Johnston said Pepsi continues to see higher prices for commodities like grain and cooking oil.

In 2024, Pepsi expects inflation to be slightly higher than the 2% to 3% it was accustomed to before the pandemic.

Consumers should expect to see price increases roughly in line with inflation, he said.

Pepsi is watching the growing use of weight loss drugs like Ozempic, but so far their impact on the business has been negligible, Laguarta said.

They could be outweighed by other trends, including rising incomes in many countries and the growing popularity of snacking in place of meals.

Were seeing a lot of tailwinds that will continue to drive our categories, he said.

Pepsi shares were up 1.5% in morning trading.

In the third quarter, 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 Streets 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.

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Ebrahim Raisi: Who is hardliner Iranian president?

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Ebrahim Raisi: Who is hardliner Iranian president?

A helicopter carrying Iran’s president crashed during bad weather on Sunday.

But who is Ebrahim Raisi – a leader who faces sanctions from the US and other nations over his involvement in the mass execution of prisoners in 1988.

The president, 63, who was travelling alongside the foreign minister and two other key Iranian figures when their helicopter crashed, had been travelling across the far northwest of Iran following a visit to Azerbaijan.

Follow live: Rescuers search for president after helicopter crash

Mr Raisi is a hardliner and former head of the judiciary who some have suggested could one day replace Supreme Leader Ayatollah Ali Khamenei.

Because of his part in the sentencing of thousands of prisoners of conscience to death back in the 1980s, he was nicknamed the Butcher of Tehran as he sat on the so-called Death Panel, for which he was then sanctioned by the US.

Raisi and Azerbaijan's President Ilham Aliyev on Sunday. Pic: Reuters
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Raisi and Azerbaijan’s President Ilham Aliyev on Sunday. Pic: Reuters

Both a revered and a controversial figure, Mr Raisi supported the country’s security services as they cracked down on all dissent, including in the aftermath of the 2022 death of Mahsa Amini – the woman who died after she was arrested for allegedly not wearing her hijab properly – and the nationwide protests that followed.

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The months-long security crackdown killed more than 500 people and saw over 22,000 detained.

People light a fire during a protest over the death of Mahsa Amini in Tehran, 2022. Pic: Reuters
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People light a fire during a protest over the death of Mahsa Amini in Tehran, 2022. Pic: Reuters

In March, a United Nations investigative panel found that Iran was responsible for the “physical violence” that led to Ms Amini’s death after her arrest for not wearing a hijab, or headscarf, to the liking of authorities.

The president is seen as a frontrunner to replace Iran's Supreme Leader Ayatollah Ali Khamenei (pictured) when he dies. Pic: Reuters
Image:
The president is seen as a frontrunner to replace Iran’s Supreme Leader Ayatollah Ali Khamenei (pictured). Pic: Reuters

The president also supported Iran’s unprecedented decision in April to launch a drone and missile attack on Israel amid its war with Hamas, the ruling militant group in Gaza responsible for the 7 October attacks which saw 1,200 people killed in southern Israel.

Involvement in mass executions

Mr Raisi is sanctioned by the US in part over his involvement in the mass execution of thousands of political prisoners in 1988 at the end of the bloody Iran-Iraq war.

Under the president, Iran now enriches uranium at nearly weapons-grade levels and hampers international inspections.

Iran has armed Russia in its war on Ukraine and has continued arming proxy groups in the Middle East, such as Yemen’s Houthi rebels and Lebanon’s Hezbollah.

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He successfully ran for the presidency back in August 2021 in a vote that got the lowest turnout in the Islamic Republic’s history as all of his potentially prominent opponents were barred from running under Iran’s vetting system.

A presidency run in 2017 saw him lose to Hassan Rouhani, the relatively moderate cleric who as president reached Tehran’s 2015 nuclear deal with world powers.

‘Very involved in anything’

Alistair Bunkall, Sky News’s Middle East correspondent, said the president is “a major figure in Iranian political and religious society” but “he’s not universally popular by any means” as his administration has seen a series of protests in the past few years against his and the government’s “hardline attitude”.

Mr Raisi is nonetheless “considered one of the two frontrunners to potentially take over” the Iranian regime when the current supreme leader dies, Bunkall said.

He added the president would have been “instrumental” in many of Iran’s activities in the region as he “would’ve been very involved in anything particularly what has been happening in Israel and the surrounding areas like Lebanon and Gaza and the Houthis over the last seven and a bit months”.

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Iran president helicopter crash: The ‘butcher of Tehran’ has a fearsome reputation – and many will be fearing instability

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Iran president helicopter crash: The 'butcher of Tehran' has a fearsome reputation - and many will be fearing instability

Ebrahim Raisi has been one of Iran’s hardest of hardliners, a fanatical and absolute believer in the Iranian revolution and its mission.

If he has died on a mountainside in the north of the country, as looks increasingly likely, it will be a major moment for the country and the region.

It will remove from the Middle East one of its toughest most uncompromising players.

Follow live: Rescuers search for president after helicopter crash

A man who launched the first direct attack on Israel in his country’s history and a hardliner on whose watch hundreds of Iranians have been killed in the brutal repression of recent women-led protests, Mr Raisi has a huge amount of blood on his hands.

The president is seen as a frontrunner to replace Iran's Supreme Leader Ayatollah Ali Khamenei (pictured) when he dies. Pic: Reuters
Image:
The president is seen as a frontrunner to replace Iran’s Supreme Leader Ayatollah Ali Khamenei (pictured). Pic: Reuters

His fearsome reputation goes back to the 1980s – a period that earned him the dubious soubriquet the Butcher of Tehran.

He sat on the so-called Death Panel of four Islamic judges who sentenced thousands of Iranian prisoners of conscience to their deaths during the purge of 1988.

Mr Raisi has personally been involved in two of the darkest periods of Iranian repression. And he was seen as one of the favourite contenders to replace the elderly and ailing Supreme Leader Ali Khamenei.

Read more:
Ebrahim Raisi: Who is Iranian president?
Iran helicopter crash: Contact made made with passenger and crew member

His accession to that role would have guaranteed years more of the same… and years more meddling abroad.

Raisi and Azerbaijan's President Ilham Aliyev on Sunday. Pic: Reuters
Image:
Raisi and Azerbaijan’s President Ilham Aliyev on Sunday. Pic: Reuters

With Mr Raisi as president, Iran has engaged in more and more adventurous interventions beyond its borders.

With him in charge Iran has helped Houthis menace international shipping in the Red Sea; helped Hezbollah engage Israel in a seven-month duel over its northern border; aided militia in Iraq to attack, and in some cases kill, American soldiers; and helped Hamas fight its own war against the Jewish state.

After two years of unrest, economic failure and stuttering recovery from the pandemic, Iran is divided and weakened.

Its government has lost much of its credibility and support because of the atrocities it has meted out to its women.

Few outside the regime and its ranks of ardent followers will mourn a man who has overseen the death, incarceration or torture of so many.

Iranians may dare yearn for less repressive times without him. Outsiders will hope for a less troublesome Iran.

Read more:
Who is Iranian President Ebrahim Raisi?

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But there are plenty more where he came from and the Supreme Leader is likely to find another hardliner to replace him.

The fear will be of instability in the run-up to elections. The government has been undermined by recent events, its Supreme Leader is unwell.

If Mr Raisi is dead, his government will try to secure the succession as quickly and smoothly as it can.

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Islamic State claims responsibility for gun attack that killed three Spanish tourists in Afghanistan

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Islamic State claims responsibility for gun attack that killed three Spanish tourists in Afghanistan

Islamic State has claimed responsibility after three Spanish tourists were killed when gunmen opened fire in Afghanistan’s central Bamiyan province.

An Afghan person was also killed, and a further four foreign nationals and three Afghans were injured in the attack in the mountainous region, the Taliban’s interior ministry has said.

Islamic State has claimed responsibility for the attack on its Telegram channel.

The Spanish Ministry of Foreign Affairs said on Friday that three of its nationals died in the attack and that at least one more had been injured.

Prime Minister Pedro Sanchez said in a post on X that he was “overwhelmed” by the news of their deaths.

Taliban spokesman Abdul Mateen Qani said on Friday that four people had been arrested.

Islamic State’s affiliate in Afghanistan is a major rival of the country’s Taliban government.

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It earlier claimed an attack on Chinese citizens at a hotel in the capital Kabul in 2022.

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How Western tourism is on the rise in Afghanistan

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From 11 May: Hundreds feared dead in Afghanistan floods

Bamiyan province is home to the remains of two giant Buddha statues blown up by the Taliban in 2001 and the region is a UNESCO world heritage site.

Tourism in Afghanistan peaked in the 1960s and 1970s when the country formed part of the popular “hippy trail” route.

Since seizing power in August 2021, the Taliban has tried to promote Afghanistan as a travel destination – despite the fact many countries’ foreign offices, including the UK’s, say it is unsafe to travel to.

While the numbers remain small, their efforts appear to have so far paid off. In 2021, 691 foreign tourists visited Afghanistan and by 2023, the number had risen to 7,000.

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