PepsiCo (NASDAQ: PEP) reported better-than-expected Q4 2021 EPS and revenue numbers but warned the impact of rising costs on its operations. The company hiked prices in October due to increased costs and warned about another potential price hike in FQ1 2022.

Similarly, Coca-Cola (NYSE: KO) reported better-than-expected Q4 2021 financial results.

PepsiCo reported an adjusted EPS of $1.53 in the fourth quarter that ended December 25, just above the consensus estimates of adjusted EPS of $1.52. Revenue was at $25.25 billion in the period, above the analyst consensus of $24.24 billion.

PepsiCo posted a net income of $1.32 billion in the quarter, or 95 cents per share, down from $1.85 billion, or $1.33 per share in the year-ago quarter.

The company said organic revenue climbed by nearly 12% in the quarter and said it expects organic revenue growth of 6% for the full-fiscal 2022.

The biggest organic revenue growth was recorded in the Latin American market, where it rose by 17%.

The company said it anticipates returning around $7.7 billion to its shareholders in the coming year, including dividends of $6.2 billion and share buybacks of $1.5 billion.

On the other hand, Coca-Cola reported adjusted EPS of 45 cents, compared to the analyst consensus of 41 cents. Revenue came in at $9.46 billion, versus the consensus estimates of $8.96 billion.

Q4 2021 net income stood at $2.41 billion, or 56 cents per share, up from $1.46 billion, or 34 cents per share, a year ago.

For FY2022, the company expects comparable EPS growth between 5% and 6%, missing the consensus estimates of 6.1% growth. It also expects higher commodity costs to weigh on earrings by mid-single digits.

Organic revenue growth for the full-fiscal 2022 is expected to range between 7% to 8%.

Goldman Sachs’ Bonnie Herzog commented: “KO's 4Q21 results were much better-than-expected as it delivered strong performance on both the top & bottom lines. Expectations heading into the print were high and KO's FY22 guide was what the bulls were looking for.”

Shares of PEP are down 1.5% in pre-open while KO stock price is up the same amount.

By Senad Karaahmetovic | [email protected]