PepsiCo has booked an increase in third-quarter profits driven by top-line gains in its snacks and drinks divisions and reaffirmed its full-year earnings guidance.
For the three months to 3 September, PepsiCo recorded net profits of US$2bn, a 4% increase on the year before. Profits, the company said today (12 October), benefited from the acquisition of Russian dairy giant Wimm-Bill-Dann (WBD) earlier this year.
Operating profits climbed by 4% to $2.9bn in the period, while sales increased by 13% to reach $17.58bn.
Frito-Lay North America, which produces Lay’s, Doritos, Cheetos and Ruffles increased volume by 1% and net revenue by 4%, which the company says was down to strong growth in club, convenience, dollar and drug channels.
Latin Americas Foods volume grew 3.5% in the quarter, reflecting solid gains in the division’s largest markets, Mexico and Brazil, and strong growth in a number of key markets across Central and South America, the company said. Quaker Foods North America also reported growth in net revenue and operating profit.
“We had strong revenue growth across our product portfolio and across our key geographic markets,” said PepsiCo’s chairman and CEO, Indra Nooyi. “We were able to achieve pricing to partially offset commodity cost inflation.”
PepsiCo reaffirmed its full-year guidance of high single-digit EPS growth to reflect “uncertainty regarding macroeconomic and consumer trends” for 2011. The company said it anticipates high global commodity cost inflation going forward.
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