PepsiCo reported an enormous bounce in quarterly revenue on Thursday, regardless of indicators that prospects are shopping for fewer cans of soda and baggage of chips as the corporate continues to lift costs aggressively.

Pepsi, which makes Gatorade, Lay’s and Quaker Oats, additionally raised its forecast for earnings in the remainder of the yr, pushing its inventory greater.

The firm reported 10 % development in income, to $22.3 billion, and almost doubled its revenue because the identical time final yr, to $2.7 billion, in its second quarter, which ended June 17. PepsiCo mentioned it anticipated income to develop 10 % for the complete yr, up from its earlier forecast of 8 %.

The quarterly outcomes exceeded analysts’ already optimistic expectations, as customers wrestle with greater costs whereas policymakers weigh their subsequent transfer of their efforts to tame inflation.

Though Pepsi earned extra final quarter, the quantity of merchandise it bought went down. The costs of its merchandise have risen by double-digit percentages for the previous six quarters, and the corporate has reported dipping gross sales volumes for the previous three quarters.

Pepsi’s costs total have been 15 % greater within the second quarter than they have been a yr earlier. The enhance was notably pronounced in Pepsi’s European division, up 20 %. Rising meals costs in Europe have attracted particular scrutiny from economists and policymakers, who’ve mentioned company earnings have been contributing to stubbornly excessive inflation there.

“We’ve been able to raise prices and consumers stay within our brands,” Ramon Laguarta, chief govt of Pepsi, mentioned on a name with analysts Thursday morning.

Mr. Laguarta attributed low unemployment within the United States and internationally as a cause customers have continued to purchase Pepsi merchandise. Data released last week confirmed the U.S. labor market cooling however nonetheless robust.

Inflation knowledge launched Wednesday confirmed that shopper costs within the United States, together with meals, have gone up at a slower rate, although are nonetheless a methods away from the Federal Reserve’s purpose. Overall, meals costs rose 5.7 % over the yr by June.

PepsiCo’s shares rose about 2.4 % Thursday. The meals and beverage large is without doubt one of the first firms to report earnings every quarter, serving as a bellwether for the way different firms could carry out. Companies within the S&P 500 are anticipated to report a 7 % decline in revenue within the second quarter, in response to estimates compiled by FactSet.

Coca-Cola and Nestlé will report earnings later this month. Several main banks will report their outcomes on Friday.