PepsiCo reports profit increase thanks to strong snack sales

 

According to the company, adjusted for currency effects and excluding acquisitions and disposals, organic growth was as high as 4.5%. Net income increased by almost 12% in the twelve weeks to June 15 to a USD 2 bn. The group offset lower sales in the beverages business in North America with growth in the snack segment and strong sales in the markets in Latin America and Asia. PepsiCo remains optimistic for 2019 and expects organic sales growth of 4%.

PepsiCo generated more than USD 64 bn in net revenue in 2018, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. “We are pleased with our results for the second quarter,” said Chairman and CEO Ramon Laguarta. “While adverse foreign exchange translation negatively impacted our reported net revenue performance, our organic revenue growth was 4.5% in the quarter.”

Laguarta continued, “We are also pleased with the progress on our priorities to make PepsiCo a faster, stronger and better company by building new capabilities, strengthening our brands, adding capacity to grow and transforming our culture. Our performance for the first half and the progress we are making on our strategic priorities give us increased confidence in achieving the 2019 financial targets we communicated earlier this year.”