PepsiCo: delivers solid second quarter

Purchase / NY. (pci) PepsiCo Inc. reported solid top- and bottom-line results for the second quarter of 2010, driven by the acquisition of its two anchor bottlers, broad-based gains across its snack and beverage portfolio in key international markets, disciplined investments in strategic initiatives and prudent cost controls. Financial Highlights:

• Reported net revenue grew 40 percent; constant currency net revenue rose 37 percent
• Reported net income down three percent; core constant currency net income up eleven percent
• Reported EPS declined seven percent to 0,98 USD; core EPS grew eight percent to 1,10 USD; core constant currency EPS grew seven percent to 1,09 USD
• Year-to-date cash flow from operations was 2,4 billion USD, up 64 percent; management operating cash flow, excluding certain items, rose 26 percent to 2,2 billion USD
• Company affirms core constant currency EPS growth target of eleven to 13 percent for fiscal 2010

«We posted a solid second quarter, exceeding our core constant currency EPS growth target for the first half of the year», said PepsiCo Chairman and CEO Indra Nooyi. «Our results reflect our ability to generate sustainable growth across a global snack and beverage portfolio despite continued macroeconomic challenges. In line with our plan, our bottler integration is on track and unlocking opportunities and efficiencies. We continue to make investments in near- and long-term opportunities across both our developed and emerging markets, and I am very pleased that we have taken a disciplined approach to our activities in North America. All of these things give us confidence that we can generate strong, sustainable growth in the second half of 2010 and beyond».

PepsiCo Chief Financial Officer Hugh Johnston: «We are benefiting from both the acquisition of our anchor bottlers earlier this year and from improving trends across our global business. As planned, we have stepped up incremental investments around the world to capitalize on untapped consumer demand, including investments in marketplace infrastructure to support both our expanding China beverage business and innovation across our global snacks portfolio. We remain confident in our ability to meet our full-year core constant currency EPS target of eleven to 13 percent».

Info: PepsiCo delivers solid second-quarter revenue and EPS performance – first-half reported EPS grew five percent – first-half core constant currency EPS grew seven percent (complete press release; 26 pages; PDF; 445 KB).