US: PepsiAmericas opens 2007 with Q1 rises
PepsiAmericas has posted a set of Q1 results driven by higher volumes in the US and Central Europe.
The PepsiCo bottler said yesterday (24 April) that net income for the first three months of 2007 leapt by 46% year-on-year, reaching US$20.6m. The strong performance came on the back of a 13.2% rise in worldwide revenue to $960.2m. The company credited this to contributions from the acquisition territories of Romania and Moldova, and volume and pricing gains in both the US and Central Europe.
During the third quarter of 2006, PepsiAmericas completed the acquisition of bottling operations in Romania and distribution rights in Moldova.
In volume terms, worldwide volume was up by 10.6%, with constant territory volume up 1.9%. US volume increased 0.6% with existing markets in Central Europe growing 14%, partially offset by volume declines of 6.4% in the Caribbean, the company noted.
"Across our markets, our organisation delivered the strong results we expected," said PepsiAmericas' Chairman and CEO, Robert Pohlad. "Our overall operating results were driven by top-line strength in both the US and Central Europe. In the US, revenues grew 5%, reflecting net pricing gains of 3.9% that offset our cost of goods sold increases. In addition, we continued to show consistent growth in our non-carbonated beverages, which accounted for over 19% of the US volume mix in the quarter."
Revenues outside the US totalled over 20% of worldwide net revenues, Pohlad noted, with Central Europe delivering 38% revenue growth on a constant territory basis.
Moving forward, the company said its full-year EPS range of $1.33 to $1.37 remains unchanged.
Earlier this year, PepsiAmericas warned that raw material costs would be substantially higher this year, after expenses knocked full-year earnings in 2006. The bottler saw operating income in 2006 slip to $356m from $393.4m a year earlier.
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