US: PepsiCo profit beats as costs fall, North America sales rise | Progresiv

PepsiCo Inc reported a better-than-expected quarterly profit as its commodity costs fell and demand for its snacks and non-carbonated beverages rose in North America.

PepsiCo has been introducing beverages with less sugar and more natural ingredients as consumers in North America, its biggest market, turn calorie-conscious and opt for products perceived as healthier.

Revenue from PepsiCo's North America beverages business rose 4 percent in the third quarter, accounting for a third of its total revenue. Sales volumes of carbonated beverages fell 2 percent in the region, but other beverages rose 10 percent, Johnston said. Revenue from its snacks business, which includes Frito-lay and Doritos chips, increased 1 percent in the region.

This is the first time PepsiCo has broken out its North American quarterly beverage sales numbers. PepsiCo also raised its target for 2015 adjusted earnings growth to 9 percent from 8 percent on a constant-currency basis.

The net income attributable to PepsiCo fell to 533 million dollars in the quarter ended Sept. 5 from 2.01 billion dollars a year earlier. PepsiCo said it took a charge of 1.4 billion dollars, or 92 cents per share, as it changed its accounting method for Venezuela operations. The company said it would exclude results of local Venezuelan units and joint venture from its financial statements from the current quarter. It will include only revenue from the sales of inventory there if cash is received.

Net revenue fell 5.2 percent to 16.33 billion dollars, the fourth straight quarter of declines, partly due to a strong dollar. (www.reuters.com)