Acquisition, strength in snacks boost PepsiCo net

by Staff
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PURCHASE, N.Y. — The acquisition of Wimm-Bill-Dann and strength in global snacks helped boost results for PepsiCo, Inc. during the second quarter and achieve an 18% increase in net income.

For the quarter ended June 11, the company had an income of $1,885 million, equal to $1.17 per share on the common stock, which compared with income of $1,603 million, or 98c per share, during the same quarter of the previous year. Revenue for the quarter was $16,827 million, up 14% compared with $14,801 million during the same quarter of the previous year.

“Our global portfolio in both snacks and beverages is growing volume and net revenue, our global snacks portfolio, in particular, posted another strong quarter with balanced top-and bottom-line growth, and we continue to enjoy robust top-line growth in key emerging markets,” said Indra Nooyi, chairman and chief executive officer. “While we are satisfied with the performance of our portfolio overall, the consumer in developed markets continues to be stressed and the competitive environment in North America beverages has been particularly challenging. We are therefore implementing previously announced incremental pricing actions in the third quarter to more fully cover input costs while continuing to support our brand-building initiatives. We remain confident in our ability to continue to profitably grow our overall business even in this uncertain economic environment.”

Frito-Lay North America had an operating profit of $853 million, up 6% from $800 million during the same quarter of the previous year. The segment had net revenue of $3,090 million, up 3% from $2,992 million during the same quarter of the previous year.

Quaker Foods North America had an operating profit of $167 million, up 6% from $159 million during the same quarter of the previous year. The segment had revenue of $583 million, nearly equal to $582 million during the same quarter of the previous year.

Latin America Foods posted an 18% increase in operating profit, to $274 million, on an 18% gain in revenues, to $1,808 million.

PepsiCo Americas Beverages had an operating profit of $983 million, up 3% from $952 million during the same quarter of the previous year. The segment had revenue of $5,629 million, up 1% from $5,548 million during the same quarter of the previous year.

For the six months ended July 11 the company as a whole had income of $3,028 million, or $1.89 per share, nearly equal to $3,033 million, or $1.87 per share, during the same period of the previous year. Revenue for the period was $28,764 million, up 19% from $24,169 million during the same period of the previous year.

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