US snacks and soft drinks maker PepsiCo has reported a 15% rise in first-quarter earnings, and said growth was strong across its portfolio.
The company posted net income of US$804m, or 46 cents per share, for the first quarter to 20 March, compared to $698m, or 40 cents per share, in the year-ago period. Revenue rose 11% to $6.13bn from $5.53bn a year earlier.
“The first quarter was just outstanding, with a second consecutive quarter of double-digit division revenue growth. Across the businesses, we’re producing strong growth,” said CEO Steve Reinemund.
The company’s snack foods unit, Frito-Lay North America, posted first-quarter revenue of $2.14bn, up 6% from $2.03bn a year earlier. The unit posted operating profit of $510m, compared to $472m in the year-ago quarter. The company said the solid first-quarter revenue growth reflects increased volume, positive mix, and modest pricing.
PepsiCo International posted a 19% rise in first-quarter revenue to $1.89bn. International snack volume increased 10%, fuelled by double-digit growth in Mexico at Sabritas and in Brazil, double-digit growth in Turkey and mid-single digit growth at Walkers in the UK.
Reinemund said the company’s outlook for 2004 remains “very positive”. PepsiCo has targeted 2004 earnings per share of around $2.29.