US: Central, Eastern Europe hampers PepsiAmericas in Q3

PepsiAmericas has posted a fall in third-quarter profits, but declared itself "satisfied" with the performance.

The company, which is set to be bought out by PepsiCo in the coming weeks, said today (28 October) that net profits for the three months to the end of September dropped to US$63.5m compared to $73.1m a year earlier. Sales also fell, to $1.13bn from $1.33bn, while operating profits were down to $115.4m from $146.3m.

The company saw its performance in Central and Eastern Europe suffer particularly in the third quarter, with  net sales in the region dropping by 27% in value to $279m and by 9.3% in volumes.

For the first nine months of 2009, net profits stood at $146.6m against $188.6m in 2008, with sales decreasing to $3.45bn from $3.77bn.

"Given the challenges in our European business and volume pressures in the US, we are satisfied with our performance this quarter," said company chairman and CEO Robert Pohlad. "In the US, our take-home business was particularly soft while pricing, productivity and cost management drove operating profits up 7% in the quarter. In Europe, the weaker economic trends in Romania negatively impacted revenues and operating profits in the quarter, while volumes sequentially improved in all other markets."

Having raised its full-year earnings guidance in July to between $1.87 to $1.94 per share, PepsiAmericas today adjusted its EPS outlook for 2009 to between $1.83 and $1.87.

"This reduced outlook reflects the impact of softer US volumes and more difficult emerging economies, particularly Romania," the firm said.

To read PepsiAmericas full statement, click here.