• YTD net profits climb 10% to US$5bn
  • Net sales in nine months to 7 September up 1.6% to $46.3bn
  • Operating profits increase 6% to $7.3bn
  • Global beverage volumes up 3%
PepsiCo posted its YTD and Q3 results today

PepsiCo posted its YTD and Q3 results today

PepsiCo has posted a strong jump in year-to-date group profits, but North American beverages dragged on the Q3 performance as CSD volumes dropped by mid-single digits.

Net profits in the nine months to 7 September were up by 10% year-on-year, to US$5bn, the group said today (16 October). Net sales rose by 1.6% to $46.3bn over the same period, while operating profits climbed by 6% to $7.3bn.

Third-quarter group results were flatter than in previous quarters, with net profits inching up by 1% to $1.9bn and sales rising by 1.5% to $16.9bn. Operating profits were down by 1% to $2.8bn as selling, general and administrative expenses increased.

Profits were further hit by continued struggles in PepsiCo's North American beverage unit. Global beverage volumes were up by 3% year-to-date, and by 1% for the quarter. However, in North America, non-carbonated beverage volumes declined low-single digits in the third-quarter, and CSD volumes fell by mid-single digits over the same period. Latin America performed better, with Q3 volumes up by 0.5%, but Europe also fell, down by 1% for the quarter.

That PepsiCo's snacks outperformed beverages may come as good news for Nelson Peltz, an investor who wants PepsiCo to buy out rival snacks maker Mondelez International. Peltz has also called for PepsiCo to split its snacks and beverages into two companies, with the possibility of selling off the beverage unit. 

PepsiCo has so far resisted calls to buy Mondelez, calling any takeover “too risky”. However, pressure to spilt snacks and beverages is likely to increase if beverage volumes in North America continue to suffer.

CEO Indra Nooyi praised today's results, saying the company's “brands are strong and our product portfolio is on-trend”. “Importantly, we have continued to make marketplace investments to strengthen our foundation for sustainable growth,” Nooyi added.

Looking ahead, the company said it continues to expect sales to grow by mid-single digits over the year.

To view the company's financial statement, click here.

To read a review of PepsiCo's results conference call, click here.

To access all just-drinks articles on PepsiCo's Q3 & YTD results, click here.