PepsiCo has slightly increased its earnings guidance, after reporting higher profits for the first nine months of its financial year.

The company said it now expects core earnings per share to rise to US$4.78, up 10% on 2015’s levels when the company was hit by exceptional costs associated with deconsolidating its operations in Venezuela. Previously, PepsiCo had predicted a 9% increase in earnings. 

Additionally, PepsiCo revealed it will re-invest the benefit of an additional trading week in “productivity and growth initiatives” in 2016. PepsiCo said it anticipates the 53rd trading week will increase sales by approximately 1%. 

PepsiCo raised its outlook after posting an increase in operating profit for the nine months of the year to 3 September. The company said EBITDA rose 21% to $7.4bn as it lapped expenses in Venezuela incurred during the third quarter of last year. Net income attributable to PepsiCo was up 32% to $4.93bn.

Currency exchange did, however, weigh on the company’s top line. Net revenue slid 3% in the period, dropping to $43.28bn. On an organic basis, sales increased 3.7%. 

“We are executing our strategy well and managing what is in our control. Our product portfolio, geographic mix and capability centres are enabling us to deliver balanced revenue and productivity,” said chairman and CEO Indra Nooyi. “Based on our year-to-date performance and our outlook for the fourth quarter, we are raising our full-year, core constant-currency EPS growth objective.” 

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.

Company Profile – free sample

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 GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.