PepsiCo tops earnings estimates as Chief Executive Indra Nooyi steps down
PepsiCo reported quarterly revenue above Wall Street estimates on Tuesday, as Chairman and CEO Indra Nooyi’s 12-year tenure at the firm came to an end.
In its third quarter report, PepsiCo noted that revenue rose 1.5% to $16.5bn meanwhile earnings totalled $1.59 a share.
The US-based company reported a 2.3% increase in North American beverage sales, the first increase in five quarters, as the company added more sparkling water and non-carbonated drinks to its portfolio like Lifewtr and Bubly.
In August, the company also revealed that it plans to buy carbonated drink maker SodaStream for $3.2bn.
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Earnings were also boosted by the increased use of advertising for its trademark drinks - Pepsi, Diet Pepsi and Pepsi Zero.
The results come after Nooyi, the first female boss of the $63.5bn turnover company, stepped down as Chief Executive of the firm.
When Nooyi was appointed in 2006, she was one of only 11 female CEOs of Fortune 500 companies.
Under her leadership, Nooyi has helped to boost PepsiCo’s revenue by more than 80%.
“We are pleased with our results for the third quarter,” said Indra Nooyi.
“We continued to see very strong operating performance from our international divisions, propelled by developing and emerging markets; Frito-Lay North America generated solid net revenue and operating profit growth; and North America Beverages delivered another quarter of sequential improvement in top-line performance.”
Nooyi’s successor, Ramon Laguarta, has worked to the company for 22 years. He will be the sixth CEO at PepsiCo.