PepsiCo profits stable in face of global downturn

PepsiCo has posted a slight fall of 1% in profit and sales respectively for the first quarter of the year, while beverage volumes grew by 7% in Europe.

Pepsico.gif PepsiCo has posted a slight fall of 1% in profit and sales respectively for the first quarter of the year, while beverage volumes grew by 7% in Europe.

Group net profit was $1.14bn (£78m) in the three months to the end of March compared to the same period last year. Net sales totalled $8.26bn (£5.68bn).

Operating profits, however, rose 2% to $1.59bn (£1.09bn) on a reported basis.

In Europe, beverage volumes grew 7%, which much of the rise attributed to PepsiCo’s acquisition of Russian juice company, Lebedyansky. However, volume growth in the UK and Germany was offset by falls in the Ukraine and Russia.

PepsiCo chairman and chief executive Indra Nooyi, says the breadth of its portfolio, geographic reach and “operating agility” helped to deliver a strong performance in the face of the global macroeconomic environment.

“In spite of the economic slowdown, all of our businesses are performing at or above expectations, which gives me confidence in reaffirming our full-year guidance,” Nooyi says.

The latest financial results comes as PepsiCo announced its $6bn (£4.09bn) bid to takeover its two largest bottlers, Pepsi Bottling Group and Pepsi Americas. It is part of a new strategy to overhaul how the company manufactures and distribute its products.

The company has also filed a lawsuit on behalf of its Gatorade product against Coca-Cola’s Powerade claiming false advertising, injury to business reputation and trademark dilution.

The action has come following a Powerade comparative ad campaign that depicts half a Gatorade bottle with the line “Don’t settle for an incomplete sports drink.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here