US: Bottler costs hit PepsiCo Q2 profits
- Q2 profits hit by currency fluctuations
- Sales up 40%
- Operating profits increase 12%
PepsiCo saw its second-quarter profits drop 3%
US soft drink and snacks maker PepsiCo saw its second quarter profits drop 3% on currency fluctuations and costs to integrate its bottlers.
For the 12 weeks ended 12 June, PepsiCo's net profits fell to US$1.60bn, compared to $1.66bn in the same period of the previous year.
The drop was a result of integration charges associated with the merger of its bottlers of $155m, the soft drinks giant said today (20 July).
Despite this, net sales leapt by 40% to reach $14.80bn, while operating profits increased 12% to $2.46bn.
“Our results reflect our ability to generate sustainable growth across a global snack and beverage portfolio despite continued macroeconomic challenges,” said PepsiCo chairman and CEO Indra Nooyi.
For fiscal 2010, the company is targeting an 11 to 13% growth rate for core constant currency EPS from its fiscal 2009 core EPS of $3.71.
For the first six months of the year, the group saw net sales rise by 28% and net profits up 9%. However, operating profits fell by 13% compared to the first half of 2008.
Click here to view the full earnings release and check back later for further insight into PepsiCo's second quarter results.
The first management briefing of 2011, brought to you by Euromonitor, looks at what this year will bring for the global drinks industry. Ahead of this, just-drinks looks back to look forward: Our brie...
With the end of the year looming, just-drinks is running a series of 'Top Tens of the Year' in the run-up to Christmas. Here are just-drinks' ten favourite quotes in 2010....
PepsiCo has closed the manufacturing lines at its bottling plant in Hampden, Baltimore resulting in the loss of 77 jobs....
PepsiCo China has confirmed that Beijing Yiqing Holding Co is to sell 15% of its stake in a joint-venture between the two firms....
PepsiCo Greater China has said it will act on the court verdict ordering it to hand back a cola recipe to Tianfu Cola Group Corp....
- Comment - Heineken's 'No' Cuts SABMiller Options
- Irish whiskey eyes a slice of Scotch's global pie
- Guinness: A Great Day for St James's Gate
- Will Remy come off worse in China Cognac recovery?
- Wines of the Beautiful South Ups its Game
- Patron Spirits' Patron Citrónge Lime
- Wm Grant CMO to head Orangina Scweppes Int'l
- Heineken rejects SABMiller purchase proposal
- Bacardi-Martini appoints Southern Europe chief
- William Grant gives Sailor Jerry pack revamp