PepsiCo tops Q2 estimates, driven by snacks | Progresiv

PepsiCo has reported better-than-expected results for its fiscal second quarter, as demand for its snacks products helped offset weak results at its core beverages unit.

For the three months to 16 July 2018, total sales were up 2.4% to 16.1 billion dollars (+2.6% organic basis), while operating profit was up 3.7% to 3.03 billion dollars, although net profit fell by 13.6% to 1.83 billion dollars. Volumes at its Snacks unit were up 1% on an organic basis, while beverages recorded a 0.5% increase.

The Frito-Lay North America unit saw sales grow by 4% on an organic basis, with volumes up 2%, while its operating profit rose by 5%, helped by cost reductions. Other regional units outside the US also saw growth – the Latin America unit recorded a 3.5% rise in organic sales (volumes -3%), the Europe Sub-Saharan Africa unit saw sales grow by a strong 7%, while the Asia, Middle East & North Africa unit reported a 6% rise.

However, that growth was partially offset by the Quaker Foods North America unit recording a 5% drop in organic sales, with volumes down 3%. Additionally, the North America Beverages unit saw sales decline by 1%, with volumes down 2%.

CEO Indra Nooyi said the group was “pleased with our results”, noting: “The majority of our businesses performed very well, particularly our international divisions propelled by continued growth in developing and emerging markets, and our North America Beverages sector posted sequential net revenue and operating profit performance improvement.” (www.kamcity.com)