The company reported a profit of $1.43 billion, or 89 cents per share, up from 72 cents in last year's first quarter. However, the company's 13% net revenue growth -- to $9.37 -- fell short of analysts' expectations.
The earnings gain was driven by recent acquisitions of two of its largest bottlers, improving top-line performance in its North American beverages business, improved margins in the Frito-Lay North America business and double-digit snacks/beverages volume gains in developing markets, including India and China.
North America Beverages maintained volume share leadership in measured channels and showed improved carbonated soft drinks volume driven by Pepsi Refresh, Throwback versions of Pepsi and Mountain Dew and PepsiCo's Super Bowl value promotions. SoBe Lifewater continued to perform well, gaining both volume and value share.
PepsiCo reported that declines in sales volume of its expanding Gatorade brand moderated, reflecting strength in the G2 line and some of the other lines. During the current quarter, it will roll out its G Series, positioned as pre-, during and post-sports beverages for serious athletes.--Karlene Lukovitz