PepsiCo has today (23 July) posted double-digit sales and earnings growth for the first half of the year on the back of strong international growth.
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The US food and beverage giant, which makes brands including Frito-Lay snacks and Quaker cereals, booked a 11% rise in operating profit to US$3.7bn for the six months to 14 June. Revenue was up 14% to $19.3bn.
Chairman and CEO Indra Nooyi said the “strength and breadth” of the company’s “global portfolio and geographic footprint” had been key to the results.
Nooyi added: “We are proud of our first-half performance and confident that we are well-positioned to deliver on our outlook amidst a challenging macroeconomic environment.”
PepsiCo saw profits in the UK and Europe jump 20% as higher snack volumes in Russia and Poland and price increases across the region boosted sales.
Earnings from the company’s Middle East, Africa and Asia division climbed 22% during the first half as higher snack volumes in India, South Africa and China drove increased sales.
PepsiCo’s Latin America Foods unit saw profits soar by a third despite higher commodity costs as higher prices boosted revenue from the company’s Sabritas and Gamesa snack businesses.
PepsiCo also felt the benefit of the weak US dollar, which helped further boost the value of overseas sales.
Nevertheless, despite its buoyant performance overseas, the company also enjoyed growth from its North American food business, which still accounts for almost 40% of group sales and over 40% of operating profit.
Frito-Lay North America saw operating profit rise 10% and revenue climb 15% during the first half as PepsiCo succeeded in increasing prices to offset higher cooking oil and fuel costs.
Operating profit from Quaker Foods North America was up 5.5% on the back of a 6% rise in sales.
