• Q2 profits hit by currency fluctuations
  • Sales up 40%
  • Operating profits increase 12%
PepsiCo saw its second-quarter profits drop 3%

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.