PepsiCo report net income increase

PepsiCo Inc.yesterdayreported that first quarter net income increased by 12%,while EPS was up 13%, driven by a 9% increase in net revenue. Each of the company’s operating divisions contributed top and bottom-line growth. Frito-Lay North America reported a 6% growth in revenues,led by strong doubledigit growth in Sun Chips multigrane snacks and Quaker Chewy granola bars and rice cakes and high-single-digit growth of Tostitos tortilla chips. Cheetos reported mid-single-digit growth, while Lay’s revenue increased in the low-singledigits an Doritos revenues declined in the mid-single-digits. Operating profit grew in line with revenue growth,reflecting increased labour and benefits charges and higher costs for cooking oil.Quaker Foods North America reported a 6% increase in revenue driven by a strong brand performance, the company said. A solid performance from the devision “Beverages and Snacks international” drove profits outside North American markets up by 21%. Snacks volume increased by 7%,driven by high single-digit growth in the UK, strong double-digit growth in Turkey,Russia and Australia and low singledigit growth in Mexico.The company said that international acquisitions were an important growth stimulator. The company reaffirmed its 2006 earnings guidance of EPS of US$2.93. Cash generated by operating activities in 2006 is expected to exceed $6.2bn.