US: International division boosts PepsiCo

Buoyant international sales boosted sales and earnings last year at PepsiCo, the US-based group said today (8 February).

PepsiCo, which owns beverage brands including Gatorade, Tropicana and Pepsi, posted a 9% jump in operating profit for 2006 to US$6.4bn on the back of 8% rise in net sales to $35.1bn.

President and CEO Indra Nooyi said the company's international operations had delivered double-digit revenue and operating profit growth during 2006.

The company finished the year well, with quarterly earnings up 5% to US$1.5bn. Fourth-quarter sales rose 3% to US$10.4bn.

During the fourth quarter, PepsiCo saw beverage volumes rise 7% in its international markets, led by double-digit gains in the Middle East and Argentina, and high single-digit growth in China and Brazil.

In North America, it was the company's non-carbonates portfolio that drove an increase in volumes. Its waters, teas and energy drinks products enjoyed "strong, double-digit" growth, although sales of Gatorade and Tropicana Pure Premium juice fell during the quarter.

Gatorade sales were hit by cooler weather during the fourth quarter, PepsiCo said, while Tropicana sales were affected by higher retail prices.

Within its carbonates portfolio, PepsiCo saw sales of trademark Pepsi and Mountain Dew fall during the fourth quarter, although diet variants did enjoy rising sales.