US snacks and soft drinks maker PepsiCo has posted a 15% rise in quarterly earnings on the strength of its Frito-Lay snacks business and lower costs from its US$13bn purchase of Quaker Oats.
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PepsiCo said earnings were $1.01bn for the second quarter to 14 June, compared to $875m in the year-ago period. The results met Wall Street estimates, reported Reuters.
Revenue for the quarter was up 6.8% to $6.54bn, from $6.12bn a year earlier.
Sales at Frito-Lay, which accounted for 38% of total profit, increased 6% year-on-year, boosted by a new type of Cheetos snack.
PepsiCo also said, however, that Frito-Lay incurred some higher-than-expected costs from moves such as replacing an oil containing trans fats with a more expensive corn oil.
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By GlobalDataLower costs from the company’s August 2001 acquisition of Quaker Oats contributed five percentage points to overall earnings growth.
PepsiCo said it was on track to meet earnings forecasts of between $2.16 and $2.19 per share for the full year.
