PepsiCo has reported a drop in net sales and profits for its fiscal first half, but investors have reacted positively after the food and beverage giant reaffirmed full-year guidance.
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Net sales for the 24 weeks to 13 June fell by 3% to US$18.85bn, while net earnings slipped 2% to US$2.8bn, compared to the same period a year earlier, PepsiCo said today (22 July).
PepsiCo saw its share price rise remain flat at $56 at the beginning of trading on the New York Stock Exchange, after the group reaffirmed its full-year guidance of mid- to high-single-digit growth in sales and earnings per share.
PepsiCo chairwoman and CEO Indra Nooyi said: “Our results this quarter reinforce the advantages of our balanced portfolio, as our food and international businesses delivered solid performance while we continued the transformation of our North American beverage business.”
PepsiCo International reported a double digit sales rise, at constant currency, for the second quarter, with drinks volumes in Europe up 2%.
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By GlobalDataLooking ahead, Nooyi said: “Across our businesses, we are investing aggressively in R&D to drive innovation to further differentiate our brands; and we believe now is the time to invest in key markets that represent enormous opportunities for years to come.”
PepsiCo recently announced plans to invest $1bn in China over the next four years, and, together with Pepsi Bottling Group, will invest $1bn in Russia over the next three years.
