• Year-to-date net profits decrease by 10% to US$4.52bn 
  • Net sales in nine months to end of September fall by 1.7%% to $45.54bn       
  • Operating profits drop by 6.6% to $6.90bn
  • Global beverage net sales down by 10% in Q3
PepsiCo has seen global beverage sales decrease

PepsiCo has seen global beverage sales decrease

PepsiCo has posted a fall in sales and profits in the first nine months of 2012, with global beverage sales in the third quarter dipping by 10%.

Net profits for the nine months to the end of September dropped by 10% to US$4.52bn, the company said earlier today (17 October). Net sales fell by 1.7%% to $45.54bn over the same period while operating profits were down by 6.6% to $6.90bn.

Third quarter results also suffered, with net profits slipping by 5.2% to $1.9bn and sales falling by 5.3% to $16.65bn. Operating profits for the quarter dropped by 3.6% to $2.8bn. PepsiCo blamed the drag on refranchising deals in Mexico and China that also saw its H1 net profits drop, by 14%.

“PepsiCo is diligently executing the strategy we set forth at the start of the year, and we remain on track to achieve our full-year targets,” said PepsiCo chairman & CEO Indra Nooyi. “Our disciplined pricing and sustained investment in brand building drove 5% organic net revenue growth reflecting 1% organic volume growth and 4% effective net pricing.”

Reported global beverages net sales for the third quarter dropped by 10%, and 3% on an organic basis. Sales in PepsiCo's snacks business, meanwhile, grew by 7% on an organic basis.

The company's PepsiCo Americas Beverages unit saw volumes decrease by 3% in Q3 with net sales dropping 7% over the same period. Operating profits sank by 16%.

For details of PepsiCo's share movement, click here. The New York Stock Exchange had not opened as the figures were initially announced.

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