Overall net income significantly increased to $1.98 billion, equivalent to $1.33 for every share during the second quarter of the year that ended June 13, amounting from $1.98 billion, equivalent to $1.29 for every share during the past year.
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Revenue fell to $15.92 billion from $16.89 billion, stung by foreign currency fluctuations. Analysts were expecting earnings of $1.24 per share on revenue of $15.8 billion. We delivered mid-single digit organic revenue growth, strong gross margin expansion and double-digit core constant currency EPS growth.
PepsiCo put up strong second-quarter financial numbers that topped most expectations as sales of pop and chips picked up. Its prior guidance was for a 7 percent increase. Considering that markets outside the USA formed 49% of PepsiCo’s revenues in 2014, with over 22% of the net revenues coming from Russian Federation, Mexico, Canada, the United Kingdom, and Brazil, the impact of the strengthening USA dollar will be significant on the top line in Q2. “Based on our year-to-date results and positive momentum in the businesses, we are increasing our full-year core constant currency EPS growth target to 8 percent”.
Frito-Lay snacks sales in North America, PepsiCo’s second-largest business, grew 2 percent to $3.45 billion in the second quarter.
Coca-Cola Co., based in Atlanta, also has recently said Wall Street analysts shouldn’t focus on volume growth, because products like mini-cans and bottles that fetch more on a per-ounce basis could help drive sales and profit growth. When stripping out the impact of foreign currency translations, revenue for both units rose 3 percent.
Organic beverage volumes declined 6% in Europe versus a 5% drop in the previous quarter. Developing and emerging market organic revenue grew 11 percent. In fact, at the first-quarter call, the company stated that it anticipates a greater-than-previously-expected Fx impact on its 2015 sales and profits.
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PepsiCo (NYSE:PEP) last issued its quarterly earnings data on Thursday, July 9th. Weak consumer spending environment, cross-category competition and growing health and wellness consciousness – consumers are particularly vigilant about the use of artificial sweeteners, high sugar content and related obesity concern – are hurting CSD demand and in turn the sales of The Coca-Coca Company KO, Pepsi and Dr Pepper Snapple Group, Inc.
