By Kimberly Chin
PepsiCo Inc. said its profit rose in the latest quarter, amid sales gains in both its beverage and snacks businesses.
The maker of Pepsi beverages, Quaker oatmeal and Tropicana orange juice said revenue rose 2.2% from a year ago to $16.45 billion. Analysts polled by Refinitiv expected $16.43 billion.
Organic revenue growth, which excludes currency fluctuations, acquisitions and divestitures, rose 4.5%.
Under Chief Executive Ramon Laguarta, who took over as CEO from Indra Nooyi in October, the company said it would increase spending this year on advertising, broadening its product lines and changing its packaging in ways that would resonate with consumers.
In April, PepsiCo introduced some new fruit flavors to its cola lineup. As public concern mounts over plastic waste, the company last month said it would reduce the use of virgin plastic in the packaging of its water brands by offering Lifewtr in 100% recycled plastic and testing an aluminum-can option for Aquafina.
PepsiCo is also adjusting its product and volume mix by focusing on selling beverages and snacks that are in minicans or smaller packages, which it expects would result in greater transactions.
For the quarter ended June 15, PepsiCo reported earnings of $2.04 billion, or $1.44 a share, up from $1.82 billion, or $1.28 a share in the comparable quarter a year earlier. This was in line with analysts' estimates. The company also reaffirmed its guidance for the fiscal year.
Excluding one-time items, earnings were $1.54 a share, beating analysts' expectations for adjusted earnings of $1.50 a share.
Sales in the company's North America Frito-Lay division rose 4.5%, and revenue in the company's North America beverages division increased 2.5%. Sales in its Latin America division rose in the second quarter, while its Europe and Sub-Saharan Africa division as well as its Asia, the Middle East and North Africa division fell.
Write to Kimberly Chin at email@example.com