US: PepsiCo thanks bottler purchases for ramping up Q3
- Q3 profits up by 10%
- Sales soar in three-month period by 33%, despite flat NA volumes
- Creates Global Nutrition Group for innovation research
PepsiCo is set fair for growth in its FY after today's Q3 results
PepsiCo has posted rises in both sales and profits for its third quarter, driven in part by the acquisition of its two anchor bottlers earlier this year.
The soft drinks and snack group, which completed the purchase of Pepsi Bottling Group and PepsiAmericas in March, said today that net profits in the three months to 4 September were up by 12% year-on-year to US$1.92bn. Sales in the period leapt by 40% to $15.51bn, while operating profits increased by a healthy 25% to $2.80bn.
For the first nine months of its fiscal year, PepsiCo saw its net profits increase by 10% to $4.95bn on the back of a 33% climb in sales, to $39.68bn. Operating profits inched up by 1.5% to $6.10bn.
The firm's PepsiCo Americas Beverages unit saw volumes in North America come in flat in the third quarter, while volumes in Europe grew by 17%, thanks primarily to Eastern Europe, where sales were driven by “a strong commercial calendar combined with an unusually hot summer”, PepsiCo said.
“Even in a macroeconomic environment that continues to be challenging, we believe we have achieved top-tier performance among leading consumer staple companies,” said chairman and CEO, Indra Nooyi. “This reflects our steadfast commitment to managing both the short-term and long-term, by driving balanced growth across our portfolio while making the right strategic investments.”
For the full-year, the company is now targeting an 11% to 12% growth rate for core constant currency EPS from its fiscal 2009 core EPS of $3.71, which is within the previous guidance range of 11 to 13%.
Coinciding with the results release, PepsiCo said today that it has created the 'Global Nutrition Group', which will focus on innovation in the areas of fruits and vegetables, grains, dairy and functional nutrition. Based in Chicago, it will be run by PepsiCo's chief scientific officer, Dr. Mehmood Khan, who has been named CEO of the group and retains responsibility for the company's research and development organisation.
Click here to view the full release and check back later for further insight into PepsiCo's results.
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