Healthy profit for PepsiCo 3Q
Quaker Oats said sales for the 2002 third quarter climbed 4 per
cent on the same period last year to $6.38 billion (€6.5bn).
US food and soft drink giant PepsiCo said its third-quarter profit rose, as most of the company's units posted profit gains, and overall sales climbed 4 per cent, to $6.38 billion (€6.5bn).
The maker of Tropicana orange juice, the Gatorade energy drink, and Quaker Oats said it earned $996 million, or 56 cents per share, for the quarter ended 7 September, compared with $890 million, or 49 cents per share, a year earlier.
A Reuters report added that PepsiCo's shares jumped amid its confidence in full-year earnings and stabilisation at Frito-Lay North America, its largest unit. However while Gatorade boosted earnings, Tropicana volume was flat and at Quaker Foods, sales fell on last year's results.
PepsiCo shares fell in the days ahead of the results and had fallen almost 27 per cent from the beginning of the year through Monday, while shares of rival Coca-Cola, the world's leading soft drink company, climbed more than 6 per cent during the same period, according to the Reuters report.
"It looks as if the lines of business as a whole are a little stronger on the operating line than we expected and that seems to be mainly driven by some strength in the Gatorade franchise," said Goldman Sachs analyst Marc Cohen.
PepsiCo said it now expects full-year earnings-per-share growth of 14 per cent - an achievable growth according to analysts.
At Gatorade/Tropicana North America volume was up 10 per cent, driven by Gatorade, while Tropicana's volume was essentially flat. Net sales climbed 8 per cent, with volume growth partially offset by higher promotional spending.
Sales at Quaker Foods North America, the company's smallest unit in terms of sales, fell 4 per cent. Volume fell 6 per cent, due in part to softness in cereals, reported Reuters.
Sales were up 3 per cent at Frito-Lay North America, the company's largest unit, boosted by new product volume, although some of the new products have not performed as well as expected, said Reuters. Sales at Pepsi-Cola North America climbed 7 per cent, with a 12 per cent rise in operating profit.
