PepsiCo Inc. yesterday reported "solid revenue and operating profit results in the second quarter of 2009, reflecting strong effective net pricing, product innovation and cost discipline." Earnings per share of $1.06 were flat on a 3 percent decline in net revenue, the company said. In constant currency, the company reported a 5.5 percent increase in net revenue and an 8 percent increase in core EPS. Indra Nooyi, PepsiCo Chairman and Chief Executive Officer, 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.
"Consumers find nourishment, simple pleasures and great value in our products, which keeps them loyal to our brands in these tough times. And our seasoned team of leaders has the operating agility to deliver on our full-year guidance while implementing our long-term plans for healthy and balanced growth. Across our businesses, we are investing aggressively in R&D to drive innovation to further differentiate our brands; and we believe now is the time to invest in key markets that represent enormous opportunities for years to come," Nooyi continued.
Richard Goodman, PepsiCo Chief Financial Officer said, "Targeted growth, disciplined cost management and a keen focus on working capital management drove strong cash flow from operations in the quarter. We are on track to deliver $6.4 billion in cash flow from operations this year, or $7 billion excluding a one-time discretionary pension contribution we made in the first quarter."
He added, "PepsiCo's strong financial position, coupled with the structural advantages of our business model, allows us to continue to invest in growth initiatives designed to enhance our competitiveness."
For more on PepsiCo's second-quarter results, see pepsico.com.