US: PepsiCo profits climb in Q3
- Third-quarter net profits climb by 4% to US$2bn
- Operating profits rise by 4% to $2.9bn
- Net sales increase by 13% to $17.58bn
- PepsiCo maintains target of high single-digit EPS growth for FY
PepsiCo has maintained its target of high single-digit EPS growth for FY
PepsiCo has booked an increase in third-quarter profits driven by top-line gains in its snacks and drinks divisions and reaffirmed its full-year earnings guidance.
For the three months to 3 September, PepsiCo recorded net profits of US$2bn, a 4% increase on the year before. Profits, the company said today (12 October), benefited from the acquisition of Russian dairy giant Wimm-Bill-Dann (WBD) earlier this year.
Operating profits climbed by 4% to $2.9bn in the period, while sales increased by 13% to reach $17.58bn.
Global beverage volumes increased by 4%, which included a three-percentage-point impact from the WBD acquisition. The increase was led by growth in emerging markets, where organic volumes climbed by 3% in beverages.
Mid-single-digit volume growth in non-carbonated beverages offset declines in CSDs, PepsiCo said.
"We had strong revenue growth across our product portfolio and across our key geographic markets," said PepsiCo's chairman and CEO, Indra Nooyi. "We were able to achieve pricing to partially offset commodity cost inflation."
PepsiCo reaffirmed its full-year guidance of high single-digit EPS growth to reflect "uncertainty regarding macroeconomic and consumer trends" for 2011. The company said it anticipates high global commodity cost inflation going forward.
Click here to view the earnings release.
Click play, below, to view the thoughts of PepsiCo's CEO, Indra Nooyi, on the company's structural changes announced earlier today (12 March)....
A change in legislation in California this month has put The Coca-Cola Co and PepsiCo in a soft drink pickle. Ray Rowlands, for one, fears a case of history repeating itself....
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