PepsiCo: Frito-Lay North America increases revenues and profit

PepsiCo, Inc. reported results for the second quarter 2018. Reported net revenue increased by 2.4%.
According to the company, foreign exchange translation had a 1-percentage-point favourable impact on reported net revenue growth. Organic revenue, which excludes the impacts of foreign exchange translation, structural and other changes, grew by 2.6%. Reported operating profit increased by 4% and core constant currency operating profit increased by 2%.

The operating profit of the snack division Frito-Lay North America (FLNA) grew by 5%, primarily reflecting the net revenue growth (+ 4%) and planned cost reductions across a number of expense categories, partially offset by certain operating cost increases.

“We are pleased with our results for the second quarter and we remain on track to achieve the financial targets we set out at the beginning of the year,” said Chairman and CEO Indra Nooyi. “The majority of our businesses performed very well, particularly our international divisions propelled by continued growth in developing and emerging markets, and our North America Beverages sector posted sequential net revenue and operating profit performance improvement.”

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