PepsiCo: Earnings Down; Organic Revenue Up
PepsiCo's Q2 earnings fell 21%, but its worldwide and Americas businesses saw organic revenue growth.
Profit for the quarter was $1.49 billion or 94 cents a share, down from $1.89 billion or $1.17 a share in Q2 2011.
Global reported revenue was hurt by beverage refranchising transactions in China and Mexico and negative currency impacts. Revenue was down 2.2%, to $16.46 billion.
But worldwide organic revenues (excluding currency fluctuations, acquisitions and divestitures) gained 5%, and volume was up 1%.
The organic revenue gains in both global snacks and beverages helped offset $350 million in commodity cost inflation during the period, said chairman/CEO Indra Nooyi. Global snacks also saw net revenue growth on a reported basis.
Organic revenues for PepsiCo Americas Foods grew 7%, in part due to higher prices, while organic revenues for Americas Beverages rose 2%.
During the quarter, PepsiCo was the largest contributor to food and nonalcoholic beverages revenue growth across IRI-measured retail channels, according to the company.
PepsiCo increased U.S. media spending by more than 40% in the period, and launched its first-ever global campaign for Pepsi, "Live for Now."