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."
Recent Marketing Daily Articles
-
Nissan Opens Door To Versa Launch June 19, 2:18 p.m.
Nissan’s new Versa Note is a "A Door to More" in the automaker’s campaign for the ... -
Saks Fifth Avenue Rolling Out New Campaign June 19, 11:12 a.m.
Saks Fifth Avenue is debuting a new marketing campaign, which it hopes will sell shoppers on ... -
JetBlue, Marriott Top Their Industries June 19, 12:23 a.m.
Just as the summer travel season heats up, the American Customer Satisfaction Index (ACSI) has released ... -
Evian Launches Wimbledon 'Wiggle' Social Effort June 18, 5:20 p.m.
<Evian -- no slouch at driving buzz during the Wimbledon tournament -- has come up with ... -
GMA/PwC Report: CPGs' Growth Slows Amid 'Rules' Shift June 18, 3:56 p.m.
Net sales growth rates for consumer packaged goods (CPG) companies slowed last year amid challenges including ... -
Industry Is Expanding In Advertising, Social June 18, 12:29 p.m.
Retailers are planning to spend big on more stores, digital technology and marketing initiatives in the ... -
Chevrolet's Fleck Talks Northeast Strategy June 18, 9:23 a.m.
Bill Fleck, Chevy's Northeast regional marketing manager, has a lot of work to keep him up ... -
Affluence Not Just For Affluent June 18, 8:58 a.m.
For affluent consumers, traditional media is still the way to go, per the latest monthly study ... -
Marriott Modifies Marketing Message June 17, 3:47 p.m.
Holiday Inn Express may advise people to “Stay Smart,” but Marriott Hotels wants to be more ... -
DeMoulin: Booming Licensing Show = Booming Business June 17, 9:05 a.m.
The Licensing Expo starting on Tuesday is the largest such event in the world, bringing 16,000 ...
Be the first to comment on "PepsiCo: Earnings Down; Organic Revenue Up"
Leave a Comment