PepsiCo beats expectations but soda struggles
NEW YORK – PepsiCo is selling more of its snacks and drinks around the world but the maker of Frito-Lay, Gatorade and Quaker Oats is still trying to figure out how to sell more soda in the United States.
Its snacks business in North America also saw healthy growth, with Doritos and Lay’s helping lift revenue by 4 percent.
For its beverage business in the Americas, however, revenue was even as price hikes offset a decline in volume.
For the three months ended March 23, PepsiCo Inc. earned $1.08 billion, or 69 cents per share. That’s down from $1.13 billion, or 71 cents per share, a year earlier.
Excluding the impact of Venezuela’s currency devaluation and other items, it earned 77 cents per share. Analysts expected 70 cents.
, according to FactSet.
Revenue rose 1 percent to $12.58 billion, beating analysts’ prediction of $12.54 billion.
When adjusting for the impact of refranchising its business in China and foreign currency exchange rates, the company said revenue rose 4.4 percent.
A lower core effective tax rate also boosted results. But the company said it expects the rate to climb for the remainder of the year.
Shares were up $1.15, or 1.5 percent, at $80.