Pepsi reports third quarter profit rise of 4.1%

Posted by AFN Staff Writers on 13th October 2011

American multi-national beverage corporation Pepsi Co has reported a rise in earnings of 4.1% for the third quarter of 2011.

Releasing its third quarter results today, Pepsi Co said the rise in profit was driven by “top-line gains across its worldwide snacks and beverage businesses and from the acquisition of Wimm-Bill-Dann (WBD), the leading dairy and juice company in Russia”.

PepsiCo Chairman and CEO Indra Nooyi said that its worldwide snacks volume had increased by eight percent, reflecting the impact of the WBD acquisition. She added that, excluding the impact of the WBD acquisition, snacks volume had grown three per cent, while worldwide beverage volume increased four per cent.

The company said that a lower tax rate in the US, as well as cost-savings from the WBD acquisition, helped in tackling higher prices for commodities, including corn and wheat.

Ms Nooyi said, “We had strong revenue growth across our product portfolio and across our key geographic markets. We were able to achieve pricing to partially offset commodity cost inflation and at the same time stimulate consumer demand for our products.  The result in the quarter was well-balanced top-line and bottom-line growth.”