PepsiCo Inc., Purchase, N.Y., reported organic revenue growth of 3.6 percent and reported net revenue growth of 0.5 percent in the second quarter of 2014, compared with the prior-year period. Global beverages experienced 2 percent organic revenue growth and a 1 percent reported net revenue decline because of unfavorable foreign exchange translation and the company’s refranchising of its bottling operations in Vietnam, it says.
For PepsiCo Americas Beverages (PAB), organic revenue increased 1 percent in the quarter, reflecting slight organic volume gains and effective net pricing. Reported net revenue was even versus the prior-year quarter, reflecting a 1-percentage-point impact from unfavorable foreign exchange translation.
More specifically, non-carbonated beverage volume grew 1 percent and carbonated soft drink volume declined 2 percent in North America. Latin America organic beverage volume increased 3 percent in the quarter.
In addition, PAB grew its liquid refreshment beverage value market share position in the United States in measured channels during the quarter.
Core constant currency operating profit for PAB increased 4 percent, reflecting effective net pricing, lower commodity costs and productivity gains, partially offset by operating cost inflation.
"Despite operating in what continues to be a challenging and volatile macro environment, we are delivering consistent, strong results," said Chairman and Chief Executive Office Indra Nooyi in a statement. "Our results reflect the power of our portfolio of products and brands, and the strength of our geographic footprint. They also reflect the hard work we've done to position our business for sustainable success. Based on the strength of our year-to-date results and our outlook for the remainder of the year, we're increasing our full-year, core constant currency EPS growth target to 8 percent."
Reported earnings per share increased 1 percent in the quarter to $1.32.
The company also expects that its organic revenue will grow mid-single digits throughout 2014, versus 2013, consistent with the company’s long-term target. It also expects 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.
