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US: PepsiCo sees profits drop in year so far

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  • 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 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%.

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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.


Sectors: Company results, Soft drinks, Wine

Companies: PepsiCo

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