REPORT: PepsiCo Reveals Revenue Growth and Strong Snack Sales in Q2
It’s shaping up to be a good year for PepsiCo. Today the global snacks and beverage company released its second quarter 2014 results, revealing organic revenue growth of 3.6 percent and a strong growth pattern overall that has led to the decision to increase its full-year 2014 core constant currency EPS growth forecast from 7 percent to 8 percent for the 2014 fiscal year.
In addition to 3.6 percent organic revenue growth, PepsiCo has also reported net revenue growth of 0.5 percent compared to the year before and core earnings per share of $1.32 for the quarter. In total, PepsiCo was able to report net revenue of $16.9 billion.
PepsiCo attributes these strong numbers to a strong performance in emerging markets and growth in all four of its business units. Its AMEA unit led the way with 7 percent organic revenue growth, followed by 5 percent growth in Europe. On the domestic front PepsiCo Americas Foods saw strong 4 percent organic revenue growth and, while soft drinks are still a tough sell in recent years, PepsiCo Americas Beverage still achieved 1 percent growth on the strength of limited items like Mountain Dew Baja Blast and Solar Flare. In total, PepsiCo’s global beverages sector grew by 2 percent while Frito-Lay has propelled its global snacks sector to 5 percent revenue growth.
“Despite operating in what continues to be a challenging and volatile macro environment, we are delivering consistent, strong results,” said PepsiCo CEO Indra Nooyi. “Our results reflect the power of our portfolio of products and brands, and the strength of our geographic footprint. They also reflect the hard work we’ve done to position our business for sustainable success. Based on the strength of our year-to-date results and our outlook for the remainder of the year, we’re increasing our full-year, core constant currency EPS growth target to eight percent.”
Check out the full infographic below: