PepsiCo 'pleased' with modest gains

by Staff
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PURCHASE, N.Y. — An on-trend product portfolio and diverse geographic footprint carried PepsiCo, Inc. through ongoing market volatility to achieve modest gains in the third quarter.

For the quarter ended Sept. 7, net income attributable to PepsiCo was $1,913 million, equal to $1.23 per share on the common stock, up 1% from $1,902 million, or $1.21 per share, during the prior year period. Net revenue for the quarter rose 1.5% to $16,909 million from $16,652 million during the same period last year.

For a closer look at the company's financial results, click the infographic, courtesy of PepsiCo.

“We are pleased with our performance,” said Indra Nooyi, chairman and chief executive officer. “We remain focused on growing our business by building our brands, innovating, driving marketplace execution, and delivering higher returns on invested capital through disciplined capital allocation. Our year-to-date results give us confidence in achieving our 2013 financial goals and we continue to believe that we have the right strategies in place to create long-term value for our shareholders.”

Operating profit for PepsiCo Americas Foods grew 9% to $1,409 million from $1,290 million during the same quarter last year. Revenue during the quarter climbed 5% to $6,077 million from $5,767 million.

Organic revenue gains, productivity initiatives and lower commodity costs benefited the Frito-Lay North America segment, which had an operating profit of $977 million, up 7% from $917 million during the same quarter of the previous year. The segment had revenue of $3,424 million, up 5% from $3,269 million.

Operating profit for the Quaker Foods North America segment was $137 million, down 11% from $154 million during the same quarter of the previous year. The loss reflected operating results of a dairy joint venture, unfavorable product mix and commodity cost inflation. Revenue for the segment was $604 million, down 2% from $615 million.

Latin America Foods operating profit was $295 million in the third quarter of fiscal 2013, up 35% from $219 million a year ago. Productivity gains in the segment helped offset commodity cost inflation and increased advertising and marketing expense. Net sales rose 9% to $2,049 million from $1,883 million.

PepsiCo Americas Beverages had operating profit of $843 million, up 1% from $837 million last year. Revenue for the segment dipped 2% to $5,406 million from $5,530 million.
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