US: PepsiCo upbeat after robust first-half

By: just-food.com | 24 July 2007

PepsiCo has today (24 July) posted rising first-half sales and earnings thanks to "broad based" across its business.

The food and beverage giant, maker of brands including Quaker Oats cereals and Walkers crisps, recorded a 9% rise in operating profit to US$3.4bn for the six months to 16 June. First-half sales came in at $16.9bn, a rise of 7% on the year.

"All of our lines of business performed at or above our expectations, enabling us to generate strong division profit growth while lapping last year's best quarter," said chairman and CEO Indra Nooyi.

PepsiCo gave an indication of how its operating units had performed during the second quarter of the year.

Frito-Lay North America saw profits rise 8% on the back of a 6% increase in sales. The company saw brands including Doritos enjoy "double-digit" sales growth, which offset a "modest decline" in sales from the Lay's portfolio.

Revenue from PepsiCo's Quaker Foods North America rose 4%, driving a 2% increase in profits. Rising raw material costs weighed on the division's bottom line, however.

Internationally, the company's snacks volumes grew by 9%. Growth in Russia, India and Mexico helped offset a dip in Walkers sales in the UK.

Nevertheless, Nooyi said the company's "strong performance" during the first half had driven the company to up its forecast on earnings per share, which now stands at $3.35 a share.

Companies: PepsiCo, Walkers