PepsiCo has lifted its forecast for underlying annual earnings after an increase in second-quarter profits.
The Lay's and Quaker owner said today (9 July) it expects its core constant-currency earnings per share to rise 8% this year, up from a previous forecast of 7%.
Go deeper with GlobalData
For the second quarter to 13 June, net profit increased to $1.98bn versus $1.97bn a year earlier. Wall Street analysts surveyed by Zacks Investment Research had predicted earnings of $1.23 per share. PepsiCo reported EPS of $1.33 per share.
Operating profit was flat against last year at $2.9bn. Without the impact of currency fluctuation, restructuring costs and commodity hedging, operating profit rose 8%, helped by price increases and productivity.
Reported net revenue dropped 6% to $15.92bn, hit by foreign exchange, but beat analyst expectations of $15.81bn.
Organic revenue was up 5.1%, helped by a 3% increase in organic revenue from Frito-Lay North America as price increases offset flat volumes. In Latin America, PepsiCo booked a 23% jump from its foods business. Volumes were up 3% but the company also hiked prices by 20%.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFor the first six months of the year, PepsiCo reported net income of $3.2bn, compared with $3.19bn.
Operating profit for the half year did fall to $4.69bn from $4.7bn a year earlier. Sales fell 5% to US$28.14bn. On an organic basis, sales were up 5%.
