US: Soft US fails to hold back PepsiAmericas in Q1

PepsiAmericas has posted a lift in sales and revenue for the first quarter of 2008, despite a soft performance in the US.

The company, which is the second-largest manufacturer, seller and distributor of PepsiCo's beverages, said today (22 April) that net income in the first three months of this year reached US$24.7m, up from $20.6m a year earlier. Sales were up by 14% to $1.1bn, with volumes rising by 12.7%.

Operating income was up by 18% to $70.3m.

While volumes from Central and Eastern European grew by 61.8%, led by double digit growth in Romania and Poland, PepsiAmericas saw total US volumes slip by 1%. CSD volume in the country declined 1%, as water brand Aquafina volume was down 11% in the quarter, thanks to strong growth a year ago, and "reflecting a softer category".

The non-CSD category, excluding Aquafina, was up 8%, despite a slow down in RTD tea, where the company cycled through strong volume and innovation a year earlier.

"First quarter was a continuation of those things that drove our success in 2007, with good execution across our diverse portfolio of markets," said company chairman and CEO, Robert Pohlad. "Central and Eastern Europe continued to drive our growth, reflecting the significant opportunities in these developing and emerging beverage markets. Strong execution of our brand and channel initiatives drove European volumes up double digits, reflecting growth across all categories.

"In the US, we were able to partially offset lower volume with good execution on our pricing, innovation and productivity initiatives.

"The diversity of our markets, and our ability to manage the challenges and maximize our opportunities continue to position us well for growth," Pohlad concluded.