PepsiCo Inc beat quarterly revenue and profit estimates on Thursday, as ramped up advertising and new low-calorie versions of Gatorade boosted demand for its beverages in North America.
The company said it expects to meet or exceed its fiscal 2019 organic revenue growth target of 4%.
Since taking the helm last October, chief executive officer Ramon Laguarta has charted out an aggressive spending plan to revive demand for out-of-favour sugary sodas and promote new flavours launched to cater to health-conscious consumers.
PepsiCo's advertising and marketing expenditure has jumped 12% so far this year as the company has splurged on new ads for its trademark Pepsi beverages, rounding off with a campaign centering around the National Football League's 100th anniversary.
Overall beverage sales in North America rose 3.4% in the third quarter to $5.64 billion (€6.33 billion), also helped by new low sugar and organic versions of the Gatorade sports drink.
Net revenue rose 4.3% to $17.19 billion (€19.31 billion) in the three months ended 7 September, beating analysts' estimates of $16.93 billion (€19.01 billion), according to IBES data from Refinitiv.
However, net income attributable to the company fell to $2.10 billion (€2.36 billion), or $1.49 per share, from $2.50 billion (€2.81 billion), or $1.75 per share, a year earlier.
Excluding one-time items, the company earned $1.56 per share, beating the average estimate of $1.50.