PepsiCo sales and EPS rise in Q2

US food and beverage giant PepsiCo has posted a 12% rise in net revenues for the second quarter and a 15% increase in earnings per share from US$0.70% to $0.80. The company added that for the first six months, net revenues were up by 11% while EPS had risen by 14%. The company’s snack food subsidiary Frito-Lay North America (FLNA) recorded strong growth in both its salty and other macro snacks products. The company said that the Lay s and Cheetos brands experienced low-single-digit increases, while Tostitos volumes were up by high-single digits. Volume increases at Quaker Foods North America were driven by high-single-digit gains in the Quaker Oatmeal and Cap n Crunch ready-to-eat cereal brands and double-digit increases in Life ready-to-eat cereal in the quarter, Pepsico said. Net revenue growth benefited from the volume gains and mix-related effective net pricing, but this was partially offset by the impact of more-favourable settlements of trade spending accruals in 2005.
Snack volume growth at PepsiCo International of 11% was led by high-single-digit growth at Sabritas in Mexico, and strong double-digit growth in Russia, Turkey, Egypt, Australia and India. PepsiCo Snacks volumes at Gamesa in Mexico increased by low-single digits and the UK grew in mid-single digits. Acquisitions added two points to volume growth, the company added.