(Reuters) – PepsiCo Inc beat analysts’ estimates of quarterly revenue by over $1 billion Thursday. The reason was higher prices, and strong demand.

Premarket trading saw shares rise 1.4%, but the company still forecasts full-year earnings lower than expected, indicating runaway inflation.

PepsiCo (NASDAQ): After raising prices for its sodas and snacks during the winter and fall, it plans further increases in this year’s pricing. Due to Omicron coronavirus, which is spreading rapidly, aluminum cans as well as labor and shipping costs, they are expected to see more rises.

Lay’s chip maker stated that demand had so far held up better in the face higher prices. However, signs of an imminent increase in inflation have raised concerns about consumers cutting back their purchases.

PepsiCo expects organic sales to increase 6% by 2022. This is a slowdown from its near 10% growth last year. Core earnings in fiscal 2022 will be $6.67 per Share, which is higher than the $6.73 analysts expected, according to IBES data by Refinitiv.

The company still saw a 12.4% increase in net revenues to $25.25 Billion during the quarter that ended December 25, beating expectations of $24.24 billion.

On Thursday, they also announced a 7% rise in the annual dividend and a new $10 Billion stock buyback programme.