US: PepsiCo hails US share growth in H1 as profits turn black

• H1 net profits bounce back, jumping by 18% to US$3.09bn driven by Vietnam bottling refranchising
• Net sales in six months to 15 June inch up by 2% to $29.39bn
• Operating profits rise by 10% in half-year to $4.53bn
• Volume and value market share improves for drinks in US

PepsiCo has posted a strong lift in half-year profits on steady sales, with its share of the US drinks market improving in the period.

The company said earlier today (24 July) that net profits in the six months to 15 June leapt by 18% year-on-year, coming in at US$3.09bn. Group net sales were up by 2% to $29.39bn, with operating profits climbing by 10% to $4.53bn.

For the second quarter of its fiscal year, PepsiCo saw net profits soar by 35% to $2.01bn as sales rose by 2% to $16.81bn. Operating profits jumped by 21% to $2.87bn.

PepsiCo noted that its bottom line was boosted by a one-off $137m gain from the refranchising of its bottling operations in Vietnam. Last year, the company confirmed its intention to divest 51% of its beverage business in the country to Suntory.

The second quarter marks a bounce-back for PepsiCo after posting sliding profits for the first quarter in April.

In the US, the company said that it had "improved both volume and value market share performance sequentially in liquid refreshment beverages" in Q2. Worldwide beverage volumes in the three-month period were up by 5%.

Looking forward, PepsiCo said that it expects full-year sales to grow in the mid-single digit range, but warned that structural changes, principally beverage refranchisings, would reduce sales growth by around 1 percentage point for the full year.

To read the company's official release, click here.