Pepsico given boost from new bottlers
DRINKS giant PepsiCo yesterday reported a quarterly profit just above analysts’ expectations, helped by strength in international snack and beverage markets and the recent acquisition of its North American bottlers.
The company, which makes Tropicana juice, Frito-Lay snacks and Quaker Oats cereals in addition to its namesake cola, stood by its full-year earnings forecast.
Net income dropped three per cent in the second quarter to $1.6bn (£1bn) or 98 cents per share.
That compared with $1.66bn, or $1.06 a share, a year earlier
Meanwhile overall sales rose 40 per cent to $14.8bn. Strength in emerging markets helped offset still-weak demand for carbonated soft drinks in North America.
Volume in Asia, Middle East and Africa rose 16 per cent for snacks and eight per cent for beverages, PepsiCo said.
“That’s really where the future growth is going to come, in Asia, the Middle East and Africa,” said analyst Tim Hoyle, of Haverford Investments.
PepsiCo chief financial officer Hugh Johnston said: “We are benefiting from both the acquisition of our anchor bottlers earlier this year and from improving trends across our global business.”
Last summer, PepsiCo reached a $7.8bn (£5.1bn) agreement to acquire the outstanding shares of its two largest bottlers, Pepsi Bottling Group and PepsiAmericas.