Bottler acquisition boosts PepsiCo net in quarter

by Staff
Share This:

PURCHASE, N.Y. — The international beverage business, worldwide snacks and the acquisition of its two anchor bottlers helped boost income 26% at PepsiCo, Inc. during the first quarter.

Net income in the first quarter ended March 20 totaled $1,430 million, equal to 89c per share on the common stock, up from $1,135 million, or 72c per share, during the same quarter of the previous year. Revenue was $9,368 million, up 13% from $8,263 million during the same quarter of the previous year.

“PepsiCo’s broad portfolio performed well in the quarter as our operating agility and solid marketplace execution enabled us to deliver strong financial and operational performance," said Indra Nooyi, chairman and chief executive officer. "Our macrosnacks business gained share in key markets as we posted solid performance in beverages supported by the benefits of the acquisition of our two largest bottlers, growth in developing markets and improving top-line trends in North America.”

Operating profit at PepsiCo Americas Beverages fell 83% to $73 million from $425 million as the company successfully completed its bottling transactions, but the company said core operating profit rose 28%, driven by the favorable impact of the acquisitions, a focus on profitable volume and ongoing productivity enhancements. Sales climbed 32% to $2,765 million.

“North America Beverages maintained volume share leadership in measured channels and showed improved C.S.D. (carbonated soft drinks) volume trends driven by Pepsi Refresh, Throwback versions of Pepsi and Mountain Dew and our Super Bowl value promotions,” PepsiCo said. “In the hydration segment, SoBe Lifewater continues to perform well, gaining both volume and value share. In the second quarter, Gatorade has begun to roll out its G Series, which provides benefits to athletes before, during and after their sports activities.”

Operating profit within the PepsiCo Americas Foods unit of PepsiCo, Inc. rose 3% in the first quarter of fiscal 2010, boosted by a 10% gain at Frito-Lay North America that helped offset declines of 12% at both Quaker Food North America and Latin America Foods. Operating profit for P.A.F. in the quarter was $1,068 million, up from $1,036 million in the first quarter of fiscal 2009. Net sales rose 4% to $4,530 million from $4,352 million.

“We delivered double-digit gains in both revenue and core constant currency operating profit in the quarter while making incremental strategic investments in China and other key markets,” said Hugh Johnston, chief financial officer. “Through rigorous financial discipline we generated $794 million in management operating cash flow, excluding certain items, which was a significant increase from last year. In the second quarter we are stepping up investments in innovation, R.&D. and infrastructure, all of which should help us accelerate our growth in the second half of the year.”

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.