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%.
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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%.
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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%.
