• PepsiCo Q3 net income rises to US$1.72bn
  • Sales slide 1.5%
  • FY EPS growth of 11-13% targeted

Falling costs and investments in innovation have helped PepsiCo today (8 October) report a solid profit performance in its third quarter of 2009, despite a dip in revenues.

The food and drinks maker reported earnings per share of US$1.09, and on a constant-currencybasis, the company delivered 5% net revenue growth and an 8% increase in core EPS.

Indra Nooyi, PepsiCo chairman and CEO, said: "PepsiCo's diversified food and beverage portfolio and our advantaged business model continued to drive solid results this quarter. Our teams around the world leveraged PepsiCo's agile go-to-market system to deliver our brands at differentiated value to consumers, who are still feeling the pinch of the global recession despite improving macroeconomic indicators."

The company's CFO Richard Goodman said PepsiCo was targeting EPS growth of 11-13% on a constant currency basis. "As we progress through 2010, if we do better than this range we will take the opportunity to make additional strategic broad-based investments in our business to enhance our competitiveness," he added.

The maker of Pepsi-Cola and Frito-Lay snacks reported net income of $1.72bn, or $1.09 per share, in the third quarter from $1.58bn, or 99 cents per share, a year earlier. Excluding items, PepsiCo earned $1.08 per share.

Revenue fell 1.5% to $11.08bn.

Click here for the press release or check back later for just-food's insight into PepsiCo's year-to-date performance.