PepsiCo: Q2 revenue up 6.4%, beating forecasts, with EPS rising to $2.18
(Il Sole 24 Ore Radiocor) - PepsiCo reported an increase in turnover in the second fiscal quarter, thanks to lower prices and new products that helped to boost sales. Specifically, the manufacturer of snacks and fizzy drinks announced a profit of $2.98 billion, equivalent to $2.18 per share, for the quarter ending 13 June. This compares with a profit of $1.26 billion, or 92 cents per share, recorded in the same quarter of the previous year. Excluding one-off items, earnings per share stood at $2.20. Analysts surveyed by FactSet had expected an adjusted profit of $2.19 per share.
Turnover rose by 6.4 per cent to $24.18 billion, exceeding Wall Street’s forecast of $23.95 billion. On an organic basis, revenue increased by 2.4 per cent. Chief Executive Ramon Laguarta attributed the growth partly to the strength of the international business, as well as to the company’s efforts to evolve its portfolio in line with current trends, such as protein and healthier ingredients. “Looking ahead, we will continue to pursue our strategic priorities by focusing on accelerating revenue growth, including the revitalisation of certain global brands, innovation with emerging, functional and enabled offerings, and investments in initiatives to make drinks more accessible,” he added. For the full year, PepsiCo has confirmed its earnings and sales growth forecasts: an increase in adjusted earnings of between 4 per cent and 6 per cent, and organic revenue growth of between 2 per cent and 4 per cent.
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