 "Indra Nooyi")
PepsiCo Inc reported a better-than-expected profit for the second quarter on Thursday, buoyed by lower raw material costs and higher demand for Frito-Lay snacks and new beverages in North America, lifting shares to a record in early trading.
The maker of Pepsi and Gatorade also boosted its forecast for adjusted profit for the year. The shares of PepsiCo, headed by Indra Nooyi (pictured), rose to an all-time high of $109, before giving up some gains to trade at $108.61 in morning trading on the New York Stock Exchange. Drinks like Propel flavored water and Naked Cold Pressed juice, Smartfood Popcorn and "Simply" brand snacks helped drive sales, the company said.
PepsiCo's cost of sales fell 6 per cent in the three months ended June 11. That helped net income attributable to PepsiCo increase 1.3 per cent to $2.01 billion, or $1.38 a share. Excluding items, the company earned $1.35 per share, beating the average analyst estimate of $1.30, according to Thomson Reuters I/B/E/S.
Net revenue fell 3.3 per cent to $15.395 billion, but inched past the average analyst estimate of $15.37 billion.
Net revenue in the North America Beverages unit, PepsiCo's biggest business, rose one per cent, the slowest growth since PepsiCo started breaking out beverage sales from the region a year ago.
Revenue from the Frito-Lay business, which includes Doritos, Lay's and the Simply line of snacks, grew three per cent.
The Purchase, New York-based company said it now expects 2016 adjusted earnings of $4.71 per share, up from its previous forecast of $4.66 per share.
