PepsiCo income up 5% in quarter

by FoodBusinessNews.net Staff
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PURCHASE, N.Y. — Thanks in part to the success of global business, PepsiCo, Inc. posted a 5% increase in net income for the first quarter ended March 22.

Income for the quarter was $1,148 million, equal to 70c per share on the common stock, up from $1,096 million, or 65c per share, during the same quarter of 2007. Net revenue for the quarter was $8,333 million, up 13% from $7,350 million during the same quarter of the previous year.

"We delivered a strong first quarter," said Indra Nooyi, chairman and chief executive officer. "Each of our operating divisions had positive results, and we are pleased with the performance of the total portfolio. During the quarter we faced the challenge of a macroeconomic slowdown in the U.S. and continued global commodity inflation, but the strength and breadth of our global footprint and portfolio helped us deliver strong first-quarter results. We drove growth in our global core trademarks like Lay’s, Mountain Dew and Pepsi and delivered innovation like G2 and TrueNorth nuts in North America and Tropicana juice drinks in China, India and the U.K."

Frito-Lay North America posted an operating profit of $633 million, up 4% from $610 million during the same quarter of the previous year. Revenue during the quarter was $2,730 million, up 7% from $2,553 million during the same quarter of 2007.

Quaker Foods North America had an operating profit of $166 million, up 6% from $156 million during the same quarter of the previous year. Net revenue was $495 million, up 7% from $463 million during the same quarter of 2007.

"In total, our first quarter was a solid start to the year, and we are reiterating our full-year outlook," Ms. Nooyi said. "While commodities and the economic outlook remain dynamic, we believe our pricing, productivity and investment strategies will allow us to continue to deliver on our long-term goals."

For the full-year 2008, the company anticipates 3% to 5% volume growth, high-single-digit net revenue growth and e.p.s. growth of at least $3.72.

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