Notably, in the second quarter, PepsiCo was once again the largest contributor to retail sales growth in the US, our largest market, among all food and beverage manufacturers, with over $400 million of retail sales growth in all measured channels, Nooyi said.
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Cost-cutting helped keep profit on par with previous year.
PepsiCo, Inc. NYSE:PEP (PepsiCo) is a global food and beverage company. From 2011 to 2014 alone, the food and beverage giant’s investment in R&D has increased nearly 40%.
Based on the strength of the quarter PepsiCo boosted its full-year profit forecast.
PepsiCo stock is reacting favorably to the earnings report in this morning’s premarket, nevertheless, the market’s recent selloff could affect this morning’s price action and shares have already started to decline.
PepsiCo Inc. (NYSE:PEP) posted strong results on constant currency basis on the back of its extensive business model and innovative business strategies. PepsiCo’s decline in revenue can be attributed to the adverse foreign exchange differences. The number of hedge funds with positions in the company increased by seven during the period, to 61, while the total value of their holdings increased by 11.83% to $8.02 billion by the end of March, from $7.17 billion at the end of 2014. Though net revenue dipped 5.7%, hitting $15.92 billion, it beat expecations of $15.80 billion.
Last Wednesday, the company also stated that it would release third quarter information regarding its beverages business sector in North America separately, rather than clubbing it with their beverage sales in Latin America.
PepsiCo’s better-than-expected performance in beverages in the US could continue in the near term, bolstered by the introduction of new products, and supported by the ever-so-increasing research and development expenditure by the company.
Gross margin expanded 115 basis points. The company reported $1.32 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.24 by $0.08. Currency is now expected to hurt earnings per share by 11% and revenues by 9% (previously 10%) in 2015.
Latin America Foods reported a 6 percent drop in revenue to $2 billion, positively impacted by productivity gains, although partially offset by cost inflation. The target is in line with management’s long-term goal of high single-digit core constant currency earnings growth.
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Moreover, they are also poised to deliver returns to their valued shareholders that would be worth anywhere between $8.5 and $9 billion in cash.
