PepsiCo Revenue Climbs but Profit Drops on Higher Expenses
October 03 2019 - 6:55AM
Dow Jones News
By Allison Prang
Profit at beverage company PepsiCo Inc. fell from a year ago
despite an increase in net revenue.
Net income fell to $2.1 billion, a drop from $2.5 billion for
the comparable quarter a year earlier.
Earnings fell to $1.49 a share, from $1.75 a share, hurt by
higher expenses. PepsiCo's selling, general and administrative
costs climbed by more than 8%.
Adjusted earnings were $1.56 a share, down from $1.59 a share.
Analysts polled by FactSet were expecting $1.50 a share.
Though profit fell, net revenue climbed 4.3% to $17.19 billion,
helped by the Frito-Lay North America unit as well as its markets
abroad. Analysts were expecting revenue of $16.93 billion.
Net revenue at PepsiCo's North American beverage division rose
year over year as well. Pepsi earlier this year rolled out three
different flavors of Pepsi that are made with real juice.
The company is now guiding to either meet or beat its
expectations for organic revenue growth of 4%. In the third
quarter, organic revenue growth -- a metric that strips out
currency effects and acquisitions -- was up 4.3%.
(END) Dow Jones Newswires
October 03, 2019 06:40 ET (10:40 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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