PepsiCo Sees Revenue Up 1.6% In First Quarter
Beverage and snack-foods giant PepsiCo has posted a 1.6% increase in net revenue for the first quarter of the year, according to accounts just filed.
The firm posted earnings-per-share growth of 43% for the period, while organic revenue was up 2.1%.
Solid Revenue Growth
"We achieved solid revenue growth in the first quarter, underpinned by global volume growth and positive net-price realisation, despite challenging food- and beverage-industry trading conditions in North America and continued volatility in a number of developing and emerging markets," said chairman and CEO Indra Nooyi. "Our first-quarter results were in line with our expectations, and we are on track to achieve our financial objectives for 2017."
Europe And Africa
Its Europe-Sub-Saharan Africa (ESSA) division posted organic growth of 4% for the period, with food/snacks volume up 3.5% and beverage volume down 1%.
The group said that this division was "positively impacted by productivity gains. Additionally, the impacts of higher prior-year restructuring charges and a prior-year impairment charge associated with certain production assets in Russia contributed 29 percentage points and 13 percentage points to operating profit growth, respectively."
However, PepsiCo noted that the ESSA division was partially offset by higher raw-material costs and impacted by unfavourable foreign-exchange effects.
Looking ahead to the coming year, PepsiCo said that it expects organic revenue growth of at least 3% for the full year.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.