PepsiCo has reported an increase in net profits for its first quarter, driven by volume gains in its worldwide snacks and international beverage divisions.
For the three months to the end of March, the company earned US$1.43bn, a 26% increase on the prior year. Group net sales increased to $9.37bn compared to sales of $8.26bn in the 2009 period, PepsiCo said today (22 April).
Operating profits, however, took a 26% drop to $840m as a result of $85m merger and integration payments associated with its bottling acquisitions, and $26m related to 2009 restructuring charges.
Despite this, PepsiCo chairman and CEO Indra Nooyi said PepsiCo’s broad portfolio performed “well” in the quarter.
“Our operating agility and solid marketplace execution enabled us to deliver strong financial and operational performance. Our macrosnacks business gained share in key markets and we posted solid performance in beverages supported by the benefits of the acquisition of our two largest bottlers, growth in developing markets and improving top-line trends in North America,” Nooyi said.
For fiscal 2010, PepsiCo said it is targeting an 11% to 13% growth rate for core constant currency EPS off of its fiscal 2009 core EPS of $3.71, with about 6% growth in core constant currency EPS in the first half of the year.

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