Beverage News

PepsiCo reports Q1 results

Beverage volume was flat during the quarter

PepsiCo Inc., Purchase, N.Y., reported its first-quarter 2014 results. Net revenue for the entire company was flat, earning $12.62 billion in the 12 weeks ending March 22 compared with $12.58 billion in the 12 weeks ending March 23, 2013. Likewise, net revenue for its PepsiCo Americas Beverages business unit was flat, with approximately $4.4 billion in both first quarters. Overall beverage volume sales also were flat for the quarter.

However, organic net revenue for the entire company increased 4 percent in the quarter. Similarly, organic revenue for global beverages grew 3 percent in the quarter, and organic revenue for its PepsiCo Americas Beverages (PAB) business unit increased 1 percent in the quarter, reflecting 1 percentage point of effective net pricing and even organic volume.

In North America, non-carbonated beverage volume grew 2 percent, and carbonated soft drink volume declined 1 percent. Latin America beverage volume decreased 1 percent, driven by volume declines in Mexico related to the enactment of taxes on certain beverage products.

"We're pleased with our performance in the first quarter of 2014,” said Chairman and Chief Executive Officer Indra Nooyi in a statement. “PepsiCo delivered mid-single-digit organic revenue growth and double-digit core constant currency earnings per share growth, despite ongoing macroeconomic volatility, political instability and other challenging marketplace conditions in a number of our key markets.

“We continue to perform well, in part because we have strong, balanced portfolios of brands, products and geographies that enable us to capture growth opportunities across multiple demand spaces while  we responsibly manage through the volatility and challenges in other parts of the business,” she continued. “We're also benefiting from the investments we've recently made to strengthen our brands, innovate more effectively, and drive better execution, all while operating more efficiently by leveraging our global scale and capabilities.”

Excluding the impact of structural changes and foreign exchange translation, the company expects organic revenue in 2014 to grow mid-single digits versus 2013, consistent with its long-term target. Based on the current foreign exchange market consensus, the company currently expects foreign exchange translation to have an unfavorable impact of approximately 3 percentage points on full-year net revenue growth in 2014.

PepsiCo also expects low-single-digit commodity inflation and productivity savings of approximately $1 billion and plans to return a total of $8.7 billion to shareholders in 2014 through dividends of approximately $3.7 billion and share repurchases of approximately $5 billion.

"We remain confident in achieving our financial goals for the full year and believe that we have the right strategies in place to create long-term value for our shareholders," Nooyi said in a statement.

To view the full report, visit www.pepsico.com/investors.

 Did you enjoy this article? Click here to subscribe to Beverage Industry.  

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Dinner with Tequila Don Julio

Diageo is taking its Tequila Don Julio brand on the road this summer with a rolling Airstream Speakeasy mobile craft cocktail bar. The team stopped in Chicago on July 29 to share some specialty tequila cocktails paired with food from Chicago restaurants Honey Butter Fried Chicken and The Radler as well as dessert venues Black Dog Gelato and Baker Miller. (Photos by Jennifer Haderspeck)

9/17/14 2:00 pm EDT

The Path to New Product Success: Navigating the latest trends for new beverage development

By attending this webinar, you will learn about the top trends and how they fit into the CPG market, which channels are influencing new products and technology, how Packaging fits into your product development, and ways you can use innovation to increase sales.

Podcasts

Maintaining beverage dispensing equipment

Iuliana Nita, Saint-Gobain Performance Plastics global marketing manager of food and beverage, offers her insights about ensuring sanitary performance of beverage dispensing equipment in foodservice applications. She also will offer some tips about choosing the right kind of tubing to handle acidic beverages.

Beverage Industry Magazine

BI September 2014 cover

2014 September

The September 2014 Beverage Industry includes a cover story on our Wholesaler of the Year, The Odom Corp., as well as articles about single-cup and iced coffees, cconvenience store growth, vegetable flavors, and more. Check it out today!

Table Of Contents Subscribe

Beverage Insider eNewsletter

Are you an Insider? Subscribe to Beverage Industry’s weekly e-newsletter to receive news headlines, new product information and magazine highlights.   

Coffee Segments

Which coffee segment will be impacted the most by coffee bean increases?
View Results Poll Archive

THE BEVERAGE INDUSTRY STORE

cleaning-in-place-dairy-foo.gif
Cleaning-in-Place: Dairy, Food and Beverage Operations, 3rd Edition

This book addresses the principles of cleaning operations, water supply issues and the science of detergents and disinfectants.

More Products

Webinars

Beverage Industry Webinars are an easy, effective and convenient way to get educated and informed on the latest industry trends and topics. All Webinars are FREE unless indicated. For more information, check out our Events page!

STAY CONNECTED

facebook40 twitter    youtubelinkedgoogle+ icon 40px