PepsiCo Inc.'s earnings fell 3% on restructuring charges as the food-and beverage company was aided by the acquisition of its two largest independent bottlers earlier this year and strong growth in key international markets.
Chairman and Chief Executive Indra Nooyi said Pepsi exceeded its earnings-growth target for the first half of the year on the strong second-quarter results.
Total beverage volume rose 13% in the Americas amid the company's new deal with Dr Pepper Snapple Group Inc., and fell 1% without those impacts as soda remained weak.
Pepsi continues to focus on international markets for growth. The company in May unveiled plans to invest an additional $2.5 billion in China over the next three years, on top of the $1 billion invested since 2008. The beverage giant also began to see efforts to revive its Gatorade sports-drink brand, which recorded weaker sales during the recession.
Pepsi reported a second-quarter profit of $1.6 billion, or 98 cents a share, down from $1.66 billion, or $1.06 a share, a year earlier. Excluding items such as mark-to-market gains and restructuring expenses, earnings rose to $1.10 from $1.02.
Revenue climbed 40% to $14.8 billion amid the acquisitions.
Analysts polled by Thomson Reuters most recently forecast earnings of $1.08 on revenue of $14.41 billion.
Gross margin rose to 54.4% from 53.9%
Volume fell 3% but revenue increased 2% at its Frito-Lay North America snacks business.
News 
Market Data 
Discover 
AI
