Purchase, N.Y.-based PepsiCo Inc. reported organic revenue growth of 3.1 percent, reported net revenue growth of 2 percent, and core earnings per share of $1.36 for the third quarter of 2014, which ended Sept. 6.

More specifically, the company experienced 8 percent organic revenue growth in developing and emerging markets and 3 percent net revenue growth, reflecting unfavorable foreign exchange translation, the company says.

Core constant currency operating profit increased 5.5 percent in the quarter, reflecting gains associated with divestitures of $20 million in its Quaker Foods North America division and $15 million in its Asia, Middle East and Africa (AMEA) division. However, this was partially offset by a $23 million impairment charge in Europe associated with a brand in Greece, the lapping of $28 million in incremental investments, as well as net gains associated with divestitures in AMEA of $11 million recorded in the prior-year quarter. Reported operating profit increased 2 percent and included the net impact of mark-to-market losses on commodity hedges and restructuring and impairment charges.

"We delivered good third-quarter results in the face of an ongoing challenged macroeconomic environment driven by increasing volatility in the emerging markets and continued sluggish consumer demand in developed markets," said Chairman and Chief Executive Officer Indra Nooyi in a statement.

"Our organic revenue grew 3 percent, and we achieved positive effective net pricing through strong price/pack revenue management,” she said. “Together with our relentless focus on productivity, this translated to both gross margin and operating margin expansion. We achieved these results because our brands are strong, our product portfolio is on-trend, our geographic footprint is broad and diverse, and we are executing well in the marketplace.

"Based on the strength of our year-to-date results and our outlook for the remainder of the year, we are raising our full-year, core constant currency [earnings per share (EPS)] growth target to 9 percent," she concluded.

Core EPS was $1.36 and reported EPS was $1.32 in the quarter. Core EPS excludes a negative net impact of $0.01 per share related to mark-to-market net losses on commodity hedges and a $0.03 per share negative impact from restructuring and impairment charges. Mark-to-market net gains and losses on commodity hedges are subsequently reflected in core division results when the divisions recognize the cost of the underlying commodity in operating profit.

The company also reports that it is on track to deliver its targeted $1 billion of productivity savings this year and that it expects to return a total of $8.7 billion to shareholders in 2014 through approximately $3.7 billion in dividends and $5 billion in share repurchases.

Specifically in its PepsiCo Americas Beverages (PAB) division, the company reported that its organic and reported revenue was even in the quarter, reflecting even organic volume. It also maintained its liquid refreshment beverage value market share position during the quarter in measured U.S. channels, it reports.

In North America, non-carbonated beverage volume grew slightly and carbonated soft drink volume declined 1.5 percent. Latin American organic beverage volume increased 2.5 percent in the period.

Core constant currency operating profit for PAB increased 4 percent in the term, reflecting lower commodity costs, productivity gains and effective net pricing, partially offset by operating cost inflation.