PepsiCo Quarterly Earnings Fall Even as Revenue Rises

pepsico earnings
Chris Rank/Bloomberg via Getty Images
PURCHASE, N.Y. -- PepsiCo reported a first-quarter profit on Thursday that beat Wall Street expectations as price hikes helped lift sales.

The Purchase, N.Y., company, which makes Frito-Lay, Gatorade and Quaker Oats, stood by its full-year forecast for core profit growth, following a year in which it cut costs and spent more on marketing its biggest brands.

Global sales volume rose 4 percent for its snacks and 3 percent for its beverages during the period, fueled by strong growth in emerging markets. Emerging and developing markets now account for more than a third of the company's revenue.

In its beverage unit in the Americas, however, revenue was even as higher prices offset a drop in volume.

For the three months period ended March 23, PepsiCo Inc. (PEP) earned $1.08 billion, or 69 cents a share. That's down from $1.13 billion, or 71 cents a share, a year earlier.

Excluding the impact of Venezuela's currency devaluation and other items, however, it earned 77 cents a share. Analysts expected 70 cents, according to FactSet.

Revenue rose 1 percent to $12.58 billion, beating analyst expectations of $12.54 billion.

Not including the impact of refranchising its business in China and the impact from foreign exchange rates, the company said revenue rose 4.4 percent.

Increase your money and finance knowledge from home

What are Penny Stocks

The lucrative and dangerous world of penny stocks.

View Course »

Investing in Real Estate

Learn the basics of investing in real estate.

View Course »

Add a Comment

*0 / 3000 Character Maximum