PepsiCo reported higher revenue in its fiscal second quarter, as lower prices and new products helped spur sales among cost-conscious shoppers.
The snacks and soda maker on Thursday posted a profit of $2.98 billion, or $2.18 a share, for its quarter ended June 13. That compares with a profit of $1.26 billion, or 92 cents a share, in last year's comparable quarter.
Stripping out one-time items, earnings came in at $2.20 a share. Analysts surveyed by FactSet had expected adjusted earnings of $2.19 a share.
Revenue climbed 6.4% to $24.18 billion, ahead of the $23.95 billion that Wall Street had modeled. On an organic basis, revenue was up 2.4%.
Chief Executive Ramon Laguarta attributed PepsiCo's growth in the recent quarter in part to strength across its international business, as well as the company's efforts to evolve its portfolio to be more in line with current trends, such as protein and healthier ingredients.
"Looking ahead, we will continue to execute on our strategic priorities with a focus on accelerating top-line growth--including the restaging of certain global brands, innovating with emerging, functional and permissible offerings and investing in certain affordability initiatives," he added.
For the year, PepsiCo backed its full-year outlook for earnings and sales growth. The company expects adjusted earnings to increase between 4% and 6%, and for organic revenue to climb between 2% and 4%.
Shares ticked 1.5% higher, to $144.66, in premarket trading.
PepsiCo, Inc. is one of the worldwide leaders in producing non-alcoholic beverages and snacks. Net sales break down by area of activity as follows:
- North America (60%): sale of beverages (50.3% of net sales; sodas, concentrated juices, water, tea and coffee-based beverages; Aquafina, Diet Mountain Dew, Diet Pepsi, Gatorade, Gatorade Zero, Mountain Dew, Pepsi, Propel brands, etc.), snacks (44.9%; chips, tortillas and pretzels; Lay's, Doritos, Tostitos, Cheetos, Fritos, Ruffles, etc.), and cereals (4.8%; ready-to-eat cereals, rice, wheat, etc.);
- Europe (15.1%): sale of snacks (Cheetos, Chipita, Doritos, Lay's, Ruffles and Walkers brands) and beverages (7UP, Diet Pepsi, Lubimy Sad, Mirinda, Pepsi and Pepsi Max);
- Latin America (12.8%): sales of snacks (Cheetos, Doritos, Emperador, Lay's, Mabel, Marias Gamesa, Ruffles, Sabritas, Saladitas and Tostitos brands) and beverages (7UP, Gatorade, H2oh!, Manzanita Sol, Mirinda, Pepsi, Pepsi Black, San Carlos and Toddy);
- Africa/Middle East/South Asia (6.8%): sale of snacks (Chipsy, Doritos, Kurkure, Lay's, Sasko, Spekko and White Star brands) and beverages (7UP, Aquafina, Mirinda, Mountain Dew and Pepsi);
- Asia/Pacific/Australia/New Zealand (5.3%): sale of snacks (BaiCaoWei, Cheetos, Doritos, Lay's and Smith's brands), beverages and syrups (7UP, Aquafina, Mirinda, Mountain Dew, Pepsi and Sting).
Net sales are distributed geographically as follows: the United States (56.3%), Mexico (7.8%), Russia (4.2%), Canada (4.1%), China (3%), the United Kingdom (2.2%), South Africa (2%), Brazil (1.9%) and other (18.5%).
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