US soft drink and snacks maker PepsiCo saw its second-quarter profits drop 3% on currency fluctuations and costs to integrate its bottlers.
For the 12 weeks ended 12 June, net income attributable to PepsiCo amounted to US$1.6bn compared to $1.66bn a year earlier.
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The drop was in part a result of $155m in integration charges associated with the merger of its bottlers and $76m of adjustments to acquired inventory.
However, revenues leapt 40% to reach $14.8bn, while operating profit increased 12% to $2.46bn.
The firm said it is benefitting from the acquisition of its anchor bottlers announced earlier this year, and from improving trends across its global business.
“Our results reflect our ability to generate sustainable growth across a global snack and beverage portfolio despite continued macroeconomic challenges,” said PepsiCo chairman and CEO Indra Nooyi.
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By GlobalDataWithin the group’s PepsiCo Americas Foods (PAF) division, Frito-Lay North America delivered an 8% increase in revenues to $3.19bn and an 8% lift in operating profit to $845m.
Quaker Foods North America, however, experienced a 4% decline in revenues to $379m and a 13% drop in operating profit to $114m.
For fiscal 2010, the company is targeting an 11 to 13% growth rate for core constant currency EPS from its fiscal 2009 core EPS of $3.71.
Click here to view the full earnings release and check back later for further insight into PepsiCo’s second-quarter results.
