PepsiCo Inc reported a higher-than-expected quarterly profit and raised its full-year adjusted earnings forecast, helped by strong sales of snacks such as Lays and Doritos chips in North America. Shares of the maker of Pepsi-Cola, Frito-Lay snacks and Tropicana juice rose 2.3 percent to $91.25 before the bell. The company said organic revenue grew 5 percent in its global snacks business, partly due to price hikes.
Organic revenue rose 2 percent in its beverages business. Snack volumes in North America grew 2.5 percent, but soda volumes fell 2 percent, as health-conscious consumers favoured juices and health drinks. Rival Coca-Cola Co reported on Tuesday flat soda volumes in North America for the second straight quarter.
PepsiCo raised its full-year earnings per share growth forecast to 8 percent from 7 percent, before taking into account foreign exchange rates that it said could reduce earnings growth by 4 percentage points. PepsiCo's net income fell 2 percent to $1.98 billion, or $1.29 per share, in the 12 weeks ended June 14 from $2.01 billion, or $1.28 per share, a year earlier.
Excluding items, the company earned $1.32 per share. Revenue rose 0.5 percent to $16.89 billion. Analysts on average had expected PepsiCo to earn $1.23 per share on revenue of $16.81 billion. The company's shares have risen 7.5 percent this year to Tuesday's close.
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