ICAN drinks and snacks giant PepsiCo yesterday raised its full-year profit forecast as it reported better-than-expected second-quarter results on higher sales and lower costs.
The forecast gave management new ammunition to fend off calls from investor Nelson Peltz to split the firm.
The maker of Pepsi-Cola, Walkers Crisps and Quaker Oats posted strong growth in China and Brazil. This helped to offset lower US sales, which were affected by Americans consuming fewer fizzy drinks.
The firm raised its full-year profit growth estimate to eight per cent from seven per cent.
Its US-listed shares rose 1.8 per cent to $90.82 yesterday.
“Clearly there are a number of challenges around the globe, but the shape and resilience of our portfolio, combined with strong execution and aggressive productivity, should enable us to successfully navigate the current environment,” said chairman and chief executive Indra Nooyi.
Peltz’s Trian Fund Management LP has been publicly campaigning for a breakup for a year, arguing that the company was too inefficient.
He said that its faster-growing snack business and slower-growing beverage business would perform better separately.
Trian declined to comment yesterday, on the results, but reiterated that it would continue to push for changes after meeting many top shareholders.