US: Bottler acquisition boosts PepsiCo FY profits
- Net profits in FY up by 6%
- Q4 sees profits drop by 5%
- North America remains "highly competitive"
PepsiCo has recorded an increase in full-year profits
PepsiCo has recorded an increase in full-year profits, driven by the acquisition of its bottlers in early-2010.
Profits in 2010 totalled US$6.32bn, a 6% rise on the prior year, the soft drinks and snacks giant reported today (10 February). Operating profits rose by 4% to $8.33bn, while sales in the period climbed by 34% to $57.84bn.
In the fourth quarter, however, net profits slid by 5% to $1.36bn. Operating profits increased by 10% to $2.23bn, with sales in the three-month period rising by 37% to $18.15bn. For the PepsiCo Americas Beverages division, volumes in North America grew by just 1% as a result of "a highly competitive environment".
Beverage volumes in Europe grew 5% for the year, driven by strong performances in Russia, Turkey and Poland.
"We are pleased with PepsiCo's performance in the fourth quarter and for the full year," PepsiCo chairman and CEO Indra Nooyi, said: "The underlying performance of our businesses remained solid despite a challenging macroeconomic environment. We posted broad-based worldwide gains in both snacks and beverages, our businesses deftly balanced a delicate price-value consumer equation, and we aggressively managed costs and productivity to deliver top-tier financial results."
Looking to 2011, PepsiCo cuts its full-year earnings estimates for this year to growth of between 7% and 8%. In October, the company said it was looking for growth of between 11% and 12% in FY 2010.
Click here to view the full earnings release.
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