PepsiCo Inc conquer analysts’ estimates for quarterly earnings by much more than $1 billion on Thursday, assisted by higher rates and robust demand from customers for its treats and sodas.

The company’s shares rose 1.4% in premarket trading, even as it forecast entire-yr earnings underneath estimates, signaling the influence from runaway cost inflation.

PepsiCo, which elevated selling prices on its sodas and treats in the drop (autumn) and wintertime, designs a lot more increases this yr as charges skyrocket for every little thing, from aluminum cans to labor and shipping, thanks to the pandemic and the unfold of the Omicron coronavirus variant.

The Lay’s chips maker beforehand claimed demand has so considerably held up far better than feared in the facial area of greater costs, but signs the quickest inflation increase in a technology could not ease shortly have induced anxieties that individuals may perhaps before long lower again on purchases.

PepsiCo forecast organic and natural gross sales to increase 6% in 2022, slowing from the near 10% advancement it noticed final calendar year. It expects fiscal 2022 main earnings of $6.67 per share, when compared with analysts’ anticipations of $6.73, according to IBES facts from Refinitiv.