US food and drinks giant PepsiCo has upgraded its full-year organic growth outlook based on the “strength” of its half-year results.
The Nasdaq-listed firm reported yesterday (2 October) net revenue climbed 2.6% in the first six months of its financial year, while organic sales rose 3.4%.
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Consequently, the maker of Frito-Lay crisps and Quaker Oats now expects organic growth of 3% in 2018, compared to 2.3% previously. However, the outlook for core earnings per share was tweaked lower to US$5.65 versus $5.70, having posted a $4.17 print for the first half.
“We are pleased with our results for the third quarter,” said PepsiCo chief executive Indra Nooyi, who is stepping down from the role. “On the strength of our year-to-date results, we have revised upward our full-year organic revenue growth target. Additionally, given the recent strengthening in the US dollar we have revised our full-year core earnings per share target to reflect our updated expectation of an approximate one-percentage-point headwind from foreign-exchange translation.”
Industry veteran Ramon Laguarta will assume the PepsiCo CEO role from Nooyi.
In terms of end figures, first-half revenue came in at $45.1bn resulting in net income of $5.7bn. The company booked operating profit of $7.7bn.
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