US: PepsiCo tops estimates with Q1 growth | Progresiv
PepsiCo has reported better-than-expected results for its first quarter, helped by beverage price hikes and demand for snacks in North America. For the quarter, revenue was down 3.2% to 12.2 billion dollars, but adjusting for the stronger dollar, revenue grow by 4.4%. Net profit was flat at 1.22 billionn, but underlying earnings per share grew by around 5%. 
The group said its beverage business reported a slight increase in revenues to $4.4bn, while the Frito-Lay snack business grew by 3.1% to 3.3 billion dollars, helped partly by new product launches. PepsiCo said it performed “terrifically well” in the Americas, although demand was sluggish in Europe, hurt due to price hikes. Looking ahead, the group expects the strength of the dollar to impact full-year revenue by about 10 percentage points and earnings by about 11 points. This compares to a previous forecast where it expected a 7 point impact for both revenue and earnings. PepsiCo said it is now looking to source more materials locally to limit the impact of currency fluctuations. (www.kamcity.com)
