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29/09/05

Permalink 02:44:33 am, Categories: Companies, 175 words  

PepsiCo announces higher earnings but profits fall

PepsiCo announced on Thursday that while third-quarter net profits fell by 37 percent due to taxes, earnings were up by a higher-than-expected 17 percent when one-time charges were excluded.

This led the beverages and snack foods company to raise its outlook on full-year earnings. The growth was driven by strong international sales and domestic demand that was increased by an exceptionally hot summer in the US. Growing especially were PepsiCo’s no carbonated brands, such as Aquafina bottled water and Gatorade sports drinks.

International sales were up 17 percent, with strongest growth in India, Turkey, Russia, China, Argentina, and the Middle East. The company’s biggest international markets, Mexico and the UK, were up from the previous quarter but sales there were still slow. Beverage volumes were up globally by 10 percent, while snack food volumes grew by 4.5 percent.

In North America, total beverage volume grew by 8 percent, a record, with slow carbonated drink sales compensated for by 24 percent growth in non-carbonated brands. Total revenues were up 13 percent to $8.18 billion, compared to $7.26 billion last year at the same time.

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