PepsiCo second-quarter profit rises
PepsiCo Inc reported higher quarterly profit, as the food and beverage maker benefited from strong international demand and the weak US dollar.
Excluding gains on commodity positions included in corporate unallocated expenses, earnings in the latest quarter were $1.03 per share.
Net revenue rose 14% to $10.95 billion.
Company-wide sales by volume rose 5%, despite a 1% decline in the Americas beverage business.
Volume rose 2% in the Americas foods business, 10% in the international snacks business and 13% in the international drinks business.
Since PepsiCo makes a wide range of products and does business in many countries, it has had an easier time offsetting the industry-wide pressures of soaring commodity costs and a US economic slowdown.
The company, based in the New York City suburb of Purchase, said revenue and profit benefited from foreign exchange rates.
The weakness of the US dollar against many other currencies increases the value of overseas sales when they are converted to dollars for inclusion in companies' income statements.
PepsiCo also affirmed its 2008 sales volume and earnings outlook, saying it still expects volume to rise 3% to 5% and earnings per share of at least $3.72.
The company raised its revenue outlook, citing acquisitions and foreign exchange rates. PepsiCo said it now expects net revenue growth at a low double-digit percentage rate. In April it forecast revenue growth at a high single-digit rate. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.