PepsiCo achieves growth in second quarter 2015
It has been a good year for PepsiCo so far. The soft drinks and snacks giant announced a strong performance in Q1 2015, and the second quarter of its fiscal year has continued along the same track. According to the latest report, PepsiCo’s second quarter financial performance has proved so strong that the company has increased its projected full year growth target from 7 percent to 8 percent.
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At the center of PepsiCo’s earnings report is organic revenue growth of 5.1 percent, an increase from last quarter’s 4.4 percent revenue growth. The company also pointed out that it was found to hold the honor of being “the largest contributor to retail sales growth in the U.S.,” boasting over $400 million of retail sales growth across all measured channels.
"Our results reflect our keen focus on innovation, brand building and marketplace execution,” said PepsiCo CEO Indra Nooyi in a press release addressing the quarterly report. “Through scientific R&D and strategic insights, we are developing sustainable innovation to offer consumers the range of food and beverage choices they're looking for and creating a powerful platform for growth. As a result, we continue to drive growth for our retail partners.”
While organic revenue in developing and emerging markets grew by 11 percent, PepsiCo noted that net revenue in these markets declined 13 percent due to problematic economic situations around the world and unfavorable foreign exchange translation—Europe and Latin America were hit harder than other sectors due to issues with the Euro, the Russian Ruble, and the Mexican Peso. But even here, Pepsi is making plans to correct losses with “pricing actions” and by seeking to optimize raw material sourcing.
“We remain on track to deliver our 5 year, $5 billion productivity savings through 2019,” said Nooyi. "We believe we have the right strategies in place to continue delivering strong constant currency operating results and healthy cash returns to shareholders."
Ireland could create template for global food sustainability
Leveraging innovation could cultivate new agricultural breakthroughs, making Ireland the most responsible and sustainable food producer on Earth, according to a renowned local luminary.
Economist and author David McWilliams has insisted that Ireland can become a pivotal carbon-neutral, resource-efficient and sustainable food producer – possibly the most influential on the planet.
He does acknowledge, however, that there are considerable obstacles on the country’s trailblazing journey to complete energy-efficient and sustainable food production.
McWilliams also claims that the widely-held belief within the EU that reducing food production thus reduces carbon emissions does not tally.
“For the European Union to get an aggregate reduction in carbon emissions,” said McWilliams at the Alltech ONE Ideas Conference. “It would seem to me much more logical to favour those countries that have had an evolutionary, ecological or environmental gift, in order to actually produce more, not less, because your input-output ratio is so much lower than it is either in the parched Mediterranean or in the frozen tundra of the North.”
Reflecting on the situation in the US, McWilliams said its agriculture output had tripled between 1948 and 2015, with exponential gains in efficiency. Surprisingly, agriculture only contributes to 7.5% of total US greenhouse gases, far below the 30% attributed to cars.
“I think American culture is changing, at least when you see it from the outside,” said McWilliams said of President Biden’s approach. “He's saying, ‘There's no point being wealthy if the wealth is only in the hands of a small minority. The wealth has to trickle down to everybody else.’”
McWilliams concluded that for Irish agriculture to modernise and grow, it should use one of Ireland’s leading sectors – technology – as a frame of reference. It currently generates over $25 billion in exports.