PEPSICO Inc said yesterday its profits had plunged 85 per cent in the fourth quarter as its international beverage business suffered dramatic losses. The giant food and beverage company said its net income for the three months ended December 31st fell to $28 million (£17 million), or 3 cents a share, from $181 million or 11 cents a share, in 1995.
The company said that in addition to the losses suffered globally by its beverage business, its Pizza Hut and Taco Bell restaurant chains also posted lower profits in what it called a sluggish industry.
PepsiCo, based in Purchase, near New York city, said its profits for all of 1995 declined 28 per cent to $1.15 billion, or 72 cents a share, from $1.61 billion, or £1 a share.
The company reported slightly improved sales for the quarter and full year, mostly on the strength of sales of soft drinks and Frito-Lay snacks in North America. PepsiCo said net sales for the quarter grew 4 per cent to $9.53 billion from $9.21 billion awhile sales for the year expanded 5 per cent to $31.65 billion from $30.26 billion.
