PepsiCo reported better-than-expected quarterly net revenue and profit on Thursday, helped by higher demand in North America for its line-up of beverages and snacks with fewer calories and more natural ingredients.
The company also raised its 2016 adjusted profit forecast.
PepsiCo's businesses in Russia, China and India improved in the third quarter, while Western Europe "is not getting worse", chief executive Indra Nooyi said on a conference call. North America is the company's biggest market, accounting for about 60 per cent of revenue in 2015.
Revenue falls
However, the company’s revenue fell for the eighth straight quarter, hurt by high inflation in some Latin American economies such as Venezuela and Argentina and unfavorable exchange rates.
Net revenue fell about 2 per cent to $16.03 billion in the third quarter, but beat the average analyst estimate of $15.83 billion.
Net income attributable to PepsiCo rose to $1.99 billion, or $1.37 per share, in the three months to September 3rd from $533 million, or 36 cents per share, a year earlier, when the company recorded a $1.36 billion impairment charge on its Venezuela operations.
Excluding items, PepsiCo earned $1.40 per share, beating the average analyst estimate of $1.32.
– Reuters
