PepsiCo: Net revenue declined three percent in Q2/2009

Purchase / NY. (bw) PepsiCo Inc., a world leader in beverages, foods and convenient snacks, said its net income declined by 2,3 percent to 1,67 billion USD in the second quarter this year, even as its beverage volume grew by eight percent in the emerging markets. The company had a net income of 1,71 billion USD in the same period ended June 13, 2008 last year.

Net revenue fell by 3,2 percent to 10,59 billion USD for the second quarter. The same stood at 10,94 billion USD in the corresponding period last year, the company said in a statement. «On a constant currency basis, Asia/Middle East/Africa (AMEA) net revenue grew 14 percent and core operating profit improved 21 percent», the company said.

«Our results this quarter reinforce the advantages of our balanced portfolio, as our food and international businesses delivered solid performance while we continued the transformation of our North American beverage business», PepsiCo Chairman and Chief Executive Officer Indra Nooyi said.

In Europe snacks volume declined one percent, which included four percentage points of growth from an acquisition. Volumes were adversely impacted by pricing actions, including weight outs, to offset local commodity inflation. Nevertheless, the business maintained market share. In the United Kingdom, Walkers grew revenue share through disciplined pricing and the continuing success of its «Do Us a Flavour» campaign.

In the Europe beverage business, volume grew two percent driven by the favourable impact of the Lebedyansky acquisition. While volumes declined in Eastern Europe, CSDs posted impressive growth in the United Kingdom aided by relevant promotions and price pack architectures.

Source: PepsiCo´s Strong, Diversified Portfolio and Growth Strategy Deliver Solid Second-Quarter Results – Company Reaffirms Full-Year Guidance.