PepsiCo profit tops estimates as North American snacks gain | Progresiv
PepsiCo Inc. posted first-quarter profit that beat analysts’ estimates after North American snack sales rose, helped by price increases. 
Earnings were 89 cents a share, excluding some items, the Purchase, New York-based company said in a statement. Analysts estimated 81 cents, according to data compiled by Bloomberg. Sales fell 2.9 per cent to 11.9 billion dollars, matching analysts’ average projection.
Chief Executive Officer Indra Nooyi has cut costs and worked to expand growth in emerging markets, but it was the domestic snack unit that bolstered the company’s results in the quarter. Revenue from PepsiCo’s Frito-Lay division rose 3 percent to 3.42 billion dollars, helping make up for declines in some of its international units, where the strong dollar reduced the value of sales generated in local currencies.
PepsiCo maintained its forecast for earnings of 4.66 dollars a share this year, excluding some items. Analysts estimate 4.71 dollars.
Net sales in the North America Beverages division rose 1.5 per cent to 4.36 billion dollars. PepsiCo has increased its "better-for-you" offerings to appeal to customers wary of its flagship products. The company removed aspartame from Diet Pepsi in August, announced a partnership with smoothie maker BarFresh Food Group Inc. in October and introduced a line of healthy vending machines in December.
The company also released a new soda brand in March and opened a New York-based restaurant and event space in January to bolster its image with craft-loving millennials.
Net revenue from most of PepsiCo’s international units declined, driven by the dollar’s strength. Europe and Sub-Saharan Africa sales fell 9.2 per cent to 1.36 billion dollars. Asia, Middle East and North Africa sales rose 1.3 per cent to 1.07 billion dollars. Latin America sales dropped 26 per cent to 1.04 billion dollars. (www.esmmagazine.com)
