ICO reported higher quarterly earnings yesterday and said it was on track to meet its financial goals for the year, despite a sluggish economy.
The maker of Pepsi-Cola, Frito-Lay snacks and Tropicana juice said net income was $1.91bn (£1.2bn), or $1.23 per share, in the third quarter, up less than one per cent from $1.90bn, or $1.21 per share, a year earlier.
Excluding items, earnings were $1.24 per share. On that basis, analysts were expecting $1.17.
Speaking on Bloomberg Television, PepsiCo chief financial officer Hugh Johnston said the company had delivered a “good quarter” and that its global beverage business was “largely in line with what the competition was doing”.
“We think that’s enough to satisfy the broader investor base,” Johnston said, adding that PepsiCo had raised prices by about three per cent in the last quarter so that it could reinvest the money in its brands and innovation.
PepsiCo has been under pressure from activist shareholder Nelson Peltz since July, when he said publicly that the company should buy Oreo cookie maker Mondelez International and split off its soft drink business.
Net revenue rose 1.5 per cent to $16.91bn. Revenues in Europe were up three per cent, reflecting price rises and favourable currency movements.
“We’re able to perform well in these conditions because our brands are strong, our product portfolio is on-trend, and our geographic footprint is broad and diverse,” ,” said chairman and CEO Indra Nooyi. “Importantly, we have continued to make marketplace investments to strengthen our foundation for sustainable growth.”