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April 23, 2003

US: US slump hits Pepsi bottlers

The slump in US consumption of CSDs continues to make its mark, with Pepsi's two largest bottlers, Pepsi Bottling Group and PepsiAmericas, both recording sharp falls in first-quarter profits.

The slump in US consumption of CSDs continues to make its mark, with Pepsi’s two largest bottlers, Pepsi Bottling Group and PepsiAmericas, both recording sharp falls in first-quarter profits.


Harsh weather in the quarter prompted both companies to issue profit warnings a few weeks ago.


Pepsi Bottling, the larger of the two, saw earnings of US$33m, down from US$54m in the same period a year before. Before an accountancy change the group earned US$39m. However the group still expects full-year earnings of $1.61 to $1.67 per share, excluding the effect of accounting changes. It forecast worldwide volume growth of 1% to 2% on a constant-territory basis, down from a target of 2% to 3% growth it gave in March.


PepsiAmericas saw its profits fall to US44.9m from US$23m last year as volumes in the US fell 7.4%. It said it still expects earnings per share growth of 9% to 11% percent this year, but it said growth would likely be at the low end of that range. The company also forecast worldwide volume growth of 1% to 2% for the year, with net price increases of 2.5 to 3.5 percent.

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