US: Volume gains boost PepsiCo profits
"Macro-snacks gained share in key markets" - Nooyi
PepsiCo has reported an increase in net profit 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.
Net sales increased to $9.37bn compared to sales of $8.26bn in the 2009 period.
Operating profit, however, dropped 26% to $840m as a result of $85m merger and integration payments associated with its bottling acquisitions, and $26m of restructuring charges in 2009.
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 macro-snacks 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 11-13% growth rate for core constant currency EPS, against its fiscal 2009 core EPS of $3.71, with about 6% growth in core constant currency EPS in the first half of the year.
Click here for the full release and check back later for further insight into PepsiCo’s first-quarter results.
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