PepsiCo, Inc (NASDAQ: PEP)
PepsiCo reported a 2% sales rise in its North American beverages unit during fiscal 2018 third-quarter after posting declines in the past four quarters.
The Doritos and Mountain Dew maker also beat expectations on both the top and bottom lines and lifted its full-year forecast for organic revenue growth.
PEP Earnings & Outlook
The beverage maker swung to a profit of $2.50 billion, or $1.75 per share for the three months to September 8, 2018, up from $2.14 billion, or $1.49 per share, in the same period last year.
Adjusted for special items, earnings were $2.26 billion, or $1.59 per share for the period, surpassing Thompson Reuters projection of $1.57 per share.
Revenue came in at $16.49 billion, up 1.5% from $16.24 billion the year-ago quarter, and ahead of expectations of $16.36 billion. North America beverages segment recorded sales of $5.46 billion, up 2% from the earlier-year period, but below estimates of $5.6 billion.
For the full year, expects earnings of $5.65 per share, and a 7 percent rise in revenue.
PepsiCo CEO Comments
“We are pleased with our results for the third quarter. We continued to see very strong operating performance from our international divisions, propelled by developing and emerging markets; Frito-Lay North America generated solid net revenue and operating profit growth; and North America Beverages delivered another quarter of sequential improvement in top-line performance. On the strength of our year-to-date results, we have revised upward our full-year organic revenue growth target. Additionally, given the recent strengthening in the U.S. dollar we have revised our full-year core earnings per share target to reflect our updated expectation of an approximate 1 percentage point headwind from foreign exchange translation,” commented Indra Nooyi, Chairman and Chief Executive Officer of PepsiCo, Inc.
PepsiCo, Inc Company Profile
PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of beverages, food, and snacks. It is a food and beverage company with a complementary portfolio of brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tropicana.
It operates through the following segments: Frito-Lay North America; Quaker Foods North America; North America Beverages; Latin America; Europe Sub-Saharan Africa; and Asia, Middle East, and North Africa.
The Frito-Lay North America segment markets, distributes, and sells snack foods under the Lay’s, Doritos, Cheetos, Tostitos, Fritos, Ruffles, and Santitas brands. The Quaker Foods North America segment includes cereals, rice, and pasta under the Quaker, Aunt Jemima, Quaker Chewy, Cap’n Crunch, Life, and Rice-A-Roni brands.
The North America Beverages segment consists of beverage concentrates, fountain syrups, and finished goods under various beverage brands such as Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Diet Mountain Dew, Tropicana Pure Premium, Sierra Mist, and Mug. The Latin America segment covers beverage, food, and snack businesses in Latin America region.
The Europe Sub-Saharan Africa segment comprises of beverage, food, and snack goods in Europe and Sub-Saharan Africa regions.
The Asia, Middle East, and North Africa segment offers snack food products under the Lay’s, Kurkure, Chipsy, Doritos, Cheetos, and Crunchy brands. The company was founded by Donald M. Kendall, Sr. and Herman W. Lay in 1965 and is headquartered in Purchase, NY. – CNN Money
