PepsiCo profits beat estimates as higher prices boost revenue
Company has increased marketing spend as it tries to drive growth in competitive market
As soft drink consumption declines, Pepsi’s battle for beverage dollars is heating up again with long-time rival Coca-Cola. Photograph: Mario Anzuoni/File Photo/Reuters
PepsiCo reported quarterly profit that beat estimates, with brands including Mountain Dew soda and Doritos chips boosting results.
Second-quarter earnings, excluding some items, amounted to $1.54 a share, compared with projections of $1.50. Revenue of $16.44 billion was narrowly ahead of estimates.
PepsiCo has boosted its marketing spending as it tries to drive growth in an increasingly competitive food-and-beverage market, particularly in the United States. As soft drink consumption declines, the battle for beverage dollars is heating up again with long-time rival Coca-Cola.
The company has benefited from higher prices on its chips and snacks, which have helped lift revenue even as it has been difficult to sustain volume growth, particularly in the key North American beverage unit.
PepsiCo has been cutting costs, including reducing head count, as it tries to increase profit amid higher commodity costs and headwinds from foreign currency. – Bloomberg