Purchase, N.Y.-based PepsiCo reported net revenue of $16.9 billion in the third quarter of 2013. This marks 1.5 percent growth in the quarter and 2 growth percent year-to-date, the company reports. Organic revenue grew 3.3 percent in the quarter and 3.9 percent year-to-date, and core constant currency operating profit rose 3 percent in the quarter, reflecting increased advertising and marketing expense and $28 million of incremental investments. However, reported operating profit declined 1 percent because of the net impact of mark-to-market losses on commodity hedges as well as certain restructuring and impairment and merger and integration costs in both 2013 and 2012, the company reports.
Specifically in PepsiCo Americas Beverages (PAB), organic revenue declined 1.5 percent in the quarter, reflecting organic volume that declined 4 percent and the negative impact of concentrate shipment timing offset by effective net pricing of 3 percentage points. In North America, non-carbonated beverage volume declined low-single digits, and carbonated soft drink volume declined mid-single digits.
Reported net revenue for PAB reached $843 million in the period, marking a 2 percent decline in the quarter and reflecting a 1-percentage-point impact of unfavorable foreign exchange translation. Core constant currency operating profit was even with the prior-year quarter, reflecting the volume decline partially offset by favorable effective net pricing, lower commodity costs and productivity gains, it reports.
"We're pleased with our performance,” said Chairman and Chief Executive Office Indra Nooyi in a statement. “PepsiCo has delivered double-digit core constant currency earnings per share growth year-to-date, despite ongoing macro-economic volatility in many markets. We're able to perform well in these conditions because our brands are strong, our product portfolio is on-trend, and our geographic footprint is broad and diverse. Importantly, we have continued to make marketplace investments to strengthen our foundation for sustainable growth.
"We remain focused on growing our business by building our brands, innovating, driving marketplace execution, and delivering higher returns on invested capital through disciplined capital allocation,” she continued. “Our year-to-date results give us confidence in achieving our 2013 financial goals, and we continue to believe that we have the right strategies in place to create long-term value for our shareholders."
