US: PepsiCo profits dip, sales hold in Q1
- Q1 group net profits slip by 1% to US$1.13bn
- Operating profits for three months to end of March flat at $1.72bn
- Sales rise by 4% to $12.43bn
PepsiCo issued its first-quarter results today
PepsiCo has recorded a slight lift in Q1 sales, with net profits dipping on rising prices in the period.
The drinks and snacks producer said earlier today (26 April) that net profits in the three months to the end of March fell by 1% year-on-year to US$1.13bn. Sales, however, were up by 4% to $12.43bn while operating profits came in flat on the corresponding period a year earlier at $1.72bn.
The company's PepsiCo Americas Beverages unit saw net sales slip by 2% in the quarter, with the refranchising of the drinks business in Mexico and a volumes dip in North America offsetting gains in Latin America. Operating profits from the unit declined in the quarter, mainly as a result of increased commodity costs, which offset the benefits of net pricing.
In Europe, the purchase of Wimm-Bill-Dann last year helped sales leap by 13% for the division, which encompasses both drinks and snacks, while Asia, Middle East & Africa delivered 12% sales growth, with beverage volumes rising by 2% driven by double-digit gains in India, Saudi Arabia and the Philippines.
"With disciplined pricing now in place, we're doubling our focus on the other key initiatives for 2012," said chairman & CEO Indra Nooyi. "Our top priorities include stepping up our brand support through increased advertising and marketing, accelerating our innovation, and driving an aggressive productivity agenda that includes a significant restructuring program.
"All of these initiatives were launched in Q1 with good results, are on track, and will gain momentum as the year progresses."
Looking forward, the firm said that it "expects a decline in core constant currency EPS of approximately 5% from its fiscal 2011 core EPS of $4.40".
To read the company's official results, click here.
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