PepsiCo tops estimates with Q1 growth | Progresiv
PepsiCo has reported better-than-expected growth for its fiscal first quarter, helped by increased demand in North America. However, the group’s margins were affected by its decision to absorb some price hikes. 
For the quarter, revenue was up 1.6% to 12.05 billion dollars (+2.1% organic), with volumes of Food/Snacks rising by 1% on an organic basis even as Beverage volumes were flat.
In North America, the Frito-Lay and the Beverage units both reported a 2% rise in sales although volumes were down 1.5% and 1%, respectively. Meanwhile, the Quaker Foods unit saw revenues decline by 3%, with volumes down 1%.
Growth was solid in Latin America, with revenues up 3% (+6% organic), with Food volumes up 1% and Beverage volumes down 3%. In Europe and Sub-Saharan Africa, revenue grew by 6% (+4% organic), driven by a 3.5% rise in Food volumes, which offset a 1% decline in Beverage volumes. And finally, in Asia, Middle East and North Africa, revenue fell by 9% (+2% organic), helped by a 7% rise in Food volumes and 3% rise in Beverage volumes.
PepsiCo said it decided to incur a margin decrease, because “We don’t like to sticker shock the consumers in those markets because we want to keep them in the category”. (www.kamcity.com)
