PepsiCo Inc., Purchase, N.Y., reported results for the second quarter of its 2016 fiscal year.
“In what continues to be an incredibly volatile global macro environment, we are pleased with our results for the second quarter,” Chairman and Chief Executive Officer Indra Nooyi said in a statement. “While reported net revenue performance was negatively impacted by foreign exchanges translation and the deconsolidation of our Venezuelan operations, we delivered balanced volume growth and positive price/mix driven by relentless execution of our commercial agenda and leading to solid organic revenue growth. At the same time, our focus on driving greater efficiency throughout or operations contributed significantly to attractive margin expansion while we continued to invest in our business. Based on our year-to-date performance, we are raising our full-year core constant currency EPS growth objective.”
According to the company, net revenue declined 3.3 percent, due to a negative 4 percent impact by foreign exchange translation and a minus 2.5 percent impact from the Venezuela deconsolidation. Organic revenue, excluding these factors, increased 3.3 percent, the company says.
Reported operating profit increased 2 percent, while core constant currency operating profit increased 4 percent, the company says.
PepsiCo’s North America Beverages (NAB) was positively impacted during the quarter by productivity gains, lower raw-material costs, favorable settlements of promotional spending accruals and insurance adjustments, partially offset by operating cost inflation, it adds.
The company reports that net revenue has declined 3.1 percent, while organic revenue grew 3.4 percent year-to-date. Additionally, reported operating profit declined 2 percent and core constant currency operating profit increased 7 percent, it says.