JOHANNESBURG - Pepico’s second quarter was weighed down by a higher tax rate, but its adjusted profit beat Wall Street expectations and revenue improved.
For the period to June 16, the beverage and snack maker earned $1.82 billion (R24.39bn), or $1.28 per share. A year earlier, the Purchase, New York, company earned $2.11bn, or $1.46 per share.
Stripping out certain items, earnings were $1.61 per share.
This, according to a poll by Zacks Investment Research, was 10cents better than Wall Street had expected.
PepsiCo’s tax rate climbed to 36.9 percent, from 23.7percent.
The company said yesterday that a $777 million provisional transition tax expense led to the tax rate increase.
Revenue rose to $16.09bn from $15.71bn, driven by higher sales in its Europe sub-Saharan Africa unit and its Frito-Lay North America division. Still, the performance was just shy of most projections.
PepsiCo still expects full-year earnings of $5.70 per share.