“Reuters) – PepsiCo Inc stood by its full-year forecast on Wednesday despite beating earnings expectations in the third quarter as it pours money back into its business.
The maker of Diet Pepsi, Frito-Lay snacks and Tropicana orange juice also reported weaker-than-expected revenue, hurt by the stronger U.S. dollar and the exit of certain businesses.
Its shares moved higher in early trading.
PepsiCo is rounding out a transition year in 2012. It ramped up marketing and streamlined its workforce and portfolio to improve performance, particularly that of North American drinks, which had lagged those of Coca-Cola.
In the just-ended third quarter, sales in that business were hurt by decisions to stop selling unprofitable drinks, including some juices and bottled water packages where Chief Executive Indra Nooyi said there was “a hell of a price war.”
“We won’t chase volume growth at all costs,” Nooyi told analysts. She said moving forward, PepsiCo would focus on categories that were growing profitably.
Third-quarter net income was $1.90 billion, or $1.21 per share, down from $2.00 billion, or $1.25 per share, a year earlier.
Excluding restructuring and other charges and a gain on commodity hedges, earnings were $1.20 per share. On that basis, analysts on average were expecting $1.16 per share, according to Thomson Reuters I/B/E/S.
Revenue fell 5 percent to $16.65 billion, below analysts’ average estimate of $16.90 billion.”
If you enjoy the content at iBankCoin, please follow us on Twitter
