PepsiCo profit beats as costs fall and sales in North America rise

Drinks giant’s move to lower-sugar beverages and natural ingredients boost sales

PepsiCo beat market expectations with quarterly profits. Photograph: Mike Blake/Reuters
PepsiCo beat market expectations with quarterly profits. Photograph: Mike Blake/Reuters

PepsiCo yesterday reported a better-than-expected quarterly profit as its commodity costs fell and demand for its snacks and non-carbonated beverages rose in North America.

PepsiCo has been introducing beverages with less sugar and more natural ingredients as consumers in North America opt for products perceived as healthier.

Revenue from PepsiCo’s North America beverages business rose 4 per cent in the third quarter, accounting for a third of its total revenue.

Revenue from its snacks business, which includes Frito-lay and Doritos chips, increased 1 per cent in the region.

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This is the first time PepsiCo has broken out its North American quarterly beverage sales numbers. PepsiCo also raised its target for 2015 adjusted earnings growth to 9 per cent from 8 per cent. – (Bloomberg)