PepsiCo Tops Expectations on Profit as Sales Increase at Frito-Lay

PepsiCo Inc has posted a profit for the first quarter that beat expectations on Wall Street following strong sales in North America of snacks were able to offset weaker results from abroad.

Earnings ended the quarter at 89 cents per share, excluding certain items, the New York company said via a statement. Analysts had estimated that profit would be 81 cents per share.

Sales were down 2.9% to end the quarter at $11.9 billion, which matched the average projection on Wall Street.

With the U.S. dollar remaining strong, sales abroad have been hurt, but the Frito-Lay division of PepsiCo bolstered results for the quarter. Sales in that unit, which makes Cheetos, Doritos, as well as Lay’s chips, were up 3% to over $3.42 billion.

The division was helped by an increase in its average pricing of over 2.5%.

CFO Hugh Johnston on Monday said that he is expecting the domestic business of PepsiCo to continuing balancing out the emerging markets weakness with their struggling economies.

PepsiCo kept its earnings forecast of $4.66 per share for the current year, excluding certain items. Wall Street has estimated $4.71 per share.

In early morning trading on Monday, PepsiCo shares were little changed. The stock has increased 3.9% during 2016.

Net sales for PepsiCo’s North America Beverages division were up 1.5% to end that quarter at $4.36 billion. The company has increased offerings “better for you,” to appeal towards customers worried about if flagship products.

PepsiCo has eliminated aspartame from its Diet Pepsi products and it announced a new partnership with BarFresh Food, a smoothie maker.

In March, the company released its most recent new brand of soda and opened a restaurant in New York as well as an event space during January to boost its image with millennials in love with crafts.

The company’s net revenue of its international units of PepsiCo included a drop of 9.2% in the region of Europe and Sub-Saharan.

The new revenue for the Asia, Middle East and North Africa region rose by 1.3% or more than $1.07 billion.

Sales in Latin America were down by 26% to end the quarter at $1.04 billion.

 

Latest News

Oracle Buying Textura at a Price of $663 Million
Oracle Buying Textura at a Price of $663 Million
AB InBev Offering More Assets of SABMiller in Europe to Win EU Approval
AB InBev Offering More Assets of SABMiller in Europe to Win EU Approval
Verizon Working With Authorities On Sabotage Incidents
Verizon Working With Authorities On Sabotage Incidents
UPS Profit Increases During First Quarter by 10%
UPS Profit Increases During First Quarter by 10%
Consumers Buying Fewer Apple Products, Sales Slump Worldwide
Consumers Buying Fewer Apple Products, Sales Slump Worldwide
Boeing Profit Drops on Lag in Commercial Deliveries
Boeing Profit Drops on Lag in Commercial Deliveries


Leave a Reply

 
© 2006-2017 The Vista Voice. Subscribe