PepsiCo posts profit beating estimates on soda and snack sales
PepsiCo Inc. reported quarterly profit that beat estimates with brands
including Mountain Dew soda and Doritos chips boosting results.
-Second-quarter earnings, excluding some items, amounted to US$1.54 a
share, compared with projections of US$1.50. Revenue of US$16.44
billion was narrowly ahead of estimates.
-PepsiCo has boosted its marketing spending as it tries to drive
growth in an increasingly competitive food-and-beverage market,
particularly in the U.S. As soda consumption declines, the battle for
beverage dollars is heating up again with long-time rival Coca-Cola Co.
-The company has benefited from higher prices on its chips and
snacks, which have helped lift revenue even as it has been difficult to
sustain volume growth, particularly in the key North American beverage
-PepsiCo has been cutting costs, including reducing head count, as it
tries to increase profit amid higher commodity costs and headwinds from
-The shares had advanced 20 per cent this year through Monday’s close, about double the 9.8 per cent gain for Coca-Cola.