PepsiCo adjusts sales guidance
Food and beverage giant PepsiCo has reduced the top end of its revenue and profit forecasts as it invests more money into business improvements “that will support improved growth and profitability in 2010 and beyond”.
“For example,” the company said, “PepsiCo is making infrastructure investments in developing markets, such as China, to drive increased penetration and distribution of both carbonated and non-carbonated beverages. It has also increased investments in differentiated science-based R&D to accelerate the company’s health and wellness transformation.”
For fiscal 2009 PepsiCo expects constant currency net revenue to be up about five per cent. The company also expects division operating profit to increase about six to seven per cent. PepsiCo had previously said growth rates would be in the mid-high single digits.
The company has not yet received regulatory or shareholder approval for the acquisitions of their two largest bottlers or resolved all competition concerns, they added. However, they are still confident the deals will proceed, providing them with greater control over the supply chain.