Income at PepsiAmericas up 35%
October 24, 2007
by FoodBusinessNews.net Staff
MINNEAPOLIS — Acquisitions and pricing gains contributed to strong third-quarter results of PepsiAmericas, Inc. During the quarter, the company posted net income of $71.5 million, equal to 56c per share on the common stock, up 35% from $53.1 million, or 42c per share, during the same quarter of 2006.
Net sales were $1,183.1 million, up 11% compared with $1,064.2 million during the same quarter of the previous year. The company attributed the revenue increases to acquisitions, worldwide net pricing gains, and strong volume growth in Central Europe.
"We are pleased with our third-quarter performance, with all geographic segments contributing to our operating profit growth," said Robert C. Pohlad, chairman and chief executive officer.
Mr. Pohlad said in the U.S. successful execution against pricing and the single-serve business helped offset higher costs and deliver operating profit growth. Volume in the U.S. was slightly less than anticipated as a result of lower take-home water, but carbonated soft drink trends improved and there was double-digit growth in the non-carbonated portfolio excluding water.
In the U.S., carbonated soft drinks declined 4% and the non-carbonated category, excluding water, grew 11% in the quarter.
Overall, the European business was the strongest contributor to growth in the quarter.
For the nine months, net income was $170.1 million, equal to $1.35 per share, up 29% compared with $132.2 million, equal to $1.03 per share, during the same period of the previous year. Net sales were $3,342.2 million, up 12% compared with $2,977.9 million during the same period of 2006.
The company also raised its full-year earnings per share range to $1.63 to $1.66.