US: PepsiAmericas Q2 figures released
PepsiAmericas, Inc. has announced reported second quarter 2004 net income growth of 16% and diluted earnings per share (EPS) growth of 16.2%. Net income was US$61.7 m, or EPS of US$0.43, compared to net income of US$53.2 m, or EPS of US$0.37, in the second quarter of 2003, For the first half of 2004, net income grew 41.5% to US$82.2 m and EPS grew 42.5% to US$0.57 compared with the first half of 2003.
Worldwide operating income grew approximately 6.6% to US$111.0 m driven by a strong performance in the bottler's US operations, while net sales grew by 4.5% to $909.7 m thanks to an 8.1% increase in worldwide average net selling price. US volume grew 1.8% also contributing to the top-line results, although worldwide volume declined 4.4% reflecting softness in international operations.
"Our performance in the second quarter of 2004 demonstrates the continued overall strength of our business," said chairman and CEO Robert C. Pohlad. "Our strong domestic volume and pricing results were able to offset the volatility in our Central European operations. We anticipated volume softness in Central Europe in light of EU accession in May, yet we have continued to maintain pricing strength."
US operating income rose by 7.7% to $107.1 m versus US$99.4 m in the second quarter of 2003, based on an increase in net sales of 6.9% to US$774.7 m. Operating income in the combined international operations declined due to soft market conditions in the Central Europe operations. International operating income was US$3.9 m compared to US$4.7 m in the second quarter of 2003. Net sales decreased 7.8% to US$135 m.
In the second quarter, Central European operations experienced adverse economic impact from the accession of the company's markets into the European Union, as well as cooler weather conditions and comparisons to strong promotional activity in the second quarter of 2003, the company said.
For the first half, worldwide operating income grew 23.2% to US$161.1 m, while worldwide net sales increased 6.1% to US$1.6 bln as worldwide net selling price improved 6.6%, offsetting the 1.1% decline in worldwide volume.
The company said it is revising its full year 2004 EPS outlook and expects EPS growth of 13% to 15%, compared to EPS of US$1.05 in 2003. Given the second quarter results for Central Europe, PepsiAmericas said it is now expect worldwide volume on a full-year basis to be flat to down slightly. However, domestic volume is expected to grow by 1%, and overall net pricing is anticipated to increase approximately 4%. PepsiAmericas expects increases in cost of goods sold in the 4% to 5% range.
Sectors: Soft drinks
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