US: PepsiCo reports drop in Q1 profits, sales jump
- Q1 net profits drop by 20% to US$1.14bn
- Operating profits leap by 105% to $1.73bn
- Net sales climb by 27% to reach $11.93bn
- Outlook anticipates high global commodity cost inflation, difficult macroeconomic conditions in developed markets
PepsiCo's first-quarter profits dropped 20%
PepsiCo has reaffirmed its full-year earnings outlook, despite recorded a drop in first quarter profits.
For the 12 weeks to 20 March, PepsiCo said today (28 April) that net profits slid by 20% to US$1.14bn. Operating profits, however, soared by 105% to $1.73bn, reflecting gains from group's acquisition of Pepsi Bottling Group and PepsiAmericas. Excluding these gains, core operating profits rose by 4% on the same period of last year.
Net sales increased by 27%, boosted by organic volume growth, pricing, the bottler acquisitions and the acquisition of Russia's Wimm-Bill-Dann.
“We are pleased with the broad-based volume and net revenue growth in the quarter,” said PepsiCo's chairman and CEO, Indra Nooyi. “Growth in emerging markets was strong, driving attractive gains in Eastern Europe, Asia and the Middle East.”
The company reaffirmed its full-year earnings outlook of 7% to 8% growth in core, constant currency EPS.
For the remainder of 2011, firm said it anticipates “high global commodity cost inflation, difficult macroeconomic conditions in developed markets and ongoing strategic investments in emerging markets and in brand-building activities”.
Check back shortly for the full news story and click here to view the earnings release.
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