{"text":[[{"start":8.49,"text":"PepsiCo has warned that the Iran war might increase the cost of its food and drinks, after launching a campaign to cut prices for inflation-weary consumers just months ago. "}],[{"start":20.82,"text":"The US food giant on Thursday reported a rebound in its salty snacks business in its most recent quarter, with stronger sales of brands such as Doritos and Lay’s in response to price cuts and the rollout of products with more natural ingredients. "}],[{"start":38.4,"text":"But on a call with analysts, chief financial officer Steve Schmitt said “our assumption is that inflation will come”. PepsiCo’s quarter ended in late March, after the US and Israel launched a war on Iran that has driven up oil prices and disrupted fertiliser supplies. "}],[{"start":57.599999999999994,"text":"The company operates a large trucking fleet and purchases tonnes of agricultural crops, but noted on Thursday that its commodity hedges would provide some protection from volatile input costs for the next six to 12 months. "}],[{"start":72.53999999999999,"text":"Schmitt added that PepsiCo would probably need to take steps to offset rising costs. He cited three: taking advantage of its vast supply infrastructure, improving productivity and adjusting its “price pack architecture”, which at a time of inflation usually involves raising average prices. "}],[{"start":92.28999999999999,"text":"“We’d like to do the majority of it through the first two, but I think the reality is depending on the magnitude and time that we have inflation, we’ll likely play in all three areas,” he said. PepsiCo maintained its past financial guidance despite the new cost uncertainty. "}],[{"start":110.88999999999999,"text":"The inflation warning came as PepsiCo reported a 2 per cent rise in sales volumes for its PepsiCo Foods North America business in the quarter, the first increase in almost three years. The business leads the market in snack sales. "}],[{"start":128.17999999999998,"text":"PepsiCo in December announced plans to simplify ingredients and reduce prices in a deal with Elliott Management, the activist investor that had pushed for changes at the company. "}],[{"start":140.26999999999998,"text":"In February, PepsiCo said it would cut prices for its biggest snack brands by up to 15 per cent after customers pushed back against years of inflation. "}],[{"start":151.49999999999997,"text":"The company said volumes of snacks including Lay’s, Ruffles, Doritos and Cheetos all rose during the quarter and they had gained market share against rival products. Overall net prices at PepsiCo’s North American foods business fell by only 1 per cent. "}],[{"start":169.28999999999996,"text":"PepsiCo has promoted versions of its snack brands without artificial colours and flavours, and stepped up advertising that highlights Lay’s origins on potato farms. "}],[{"start":181.66999999999996,"text":"Volumes declined by 2.5 per cent in PepsiCo’s North American beverages unit, as it battles competition from Coca-Cola and new rival brands. The company said that as of later this year, it plans to colour the Fruit Punch, Lemon Lime and Orange versions of its Gatorade sports drink with fruits and vegetables. "}],[{"start":202.56999999999996,"text":"Food volumes in its Europe, Middle East and Africa division rose 9 per cent in the quarter. Ramon Laguarta, chief executive, said that PepsiCo’s international businesses “haven’t seen an impact on demand . . . since the war started”. "}],[{"start":220.01999999999995,"text":"“Actually, I would say in some markets we’re seeing a benefit because we have better supply chain than some of our competitors, especially in the food business,” he said."}],[{"start":231.40999999999997,"text":"Revenue rose 8.5 per cent year-on-year to $19.4bn, beating estimates compiled by Visible Alpha. Net income was up 27 per cent to $2.3bn, also higher than expected."}],[{"start":257.64,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1776387289_8176.mp3"}