PepsiCo sales beats on boost from snacks, beverages
INTERNATIONAL - PepsiCo Inc beat Wall Street estimates for sales and profit on Wednesday, boosted by higher demand for its snacks, low-sugar sodas and other beverages across its major markets, sending its shares up about 2 percent before the bell.
Beverage and packaged food companies are under pressure as more consumers gravitate toward food products with low sugar and sodium.
To cater to this trend, PepsiCo has tweaked its recipes and ingredients, while acquiring companies such as Bare chips and launching Pepsi Zero Sugar, bubly sparkling water and Pure Leaf iced teas.
Sales in its North America beverages unit rose 2.15 percent, while its Frito-Lay snacks division grew 5.5 percent.
Organic sales, a key metric that shows the health of Pepsi's legacy brands and strips out impacts from currency fluctuations and acquisitions, rose 5.2 percent, recording its fastest pace of quarterly growth in more than three years, the company said bit.ly/2V5HWci.
Net income attributable to the company rose to $1.41 billion, or $1 per share, for the three months ended March 23 from $1.34 billion, or 94 cents per share, a year earlier.
Excluding one-time items, the company earned 97 cents per share.
Net revenue rose 2.6 percent to $12.88 billion. Analysts were expecting profit of 92 cents per share and revenue of $12.70 billion, according to IBES data from Refinitiv.
The company also reiterated its forecast for 2019.Reuters