PepsiCo Revenue Climbs but Profit Drops on Higher Expenses -- update
October 03 2019 - 7:31AM
Dow Jones News
By Allison Prang
Profit at snacks and beverage company PepsiCo Inc. fell from a
year ago despite another quarter of strong sales growth.
In the third quarter, organic revenue growth -- a metric that
strips out currency effects and acquisitions -- was up 4.3%. The
company is now guiding to either meet or beat its expectations for
organic revenue growth of 4% for the year.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%, canceling out a lot of its top-line
gains. Its income-tax provision also rose significantly.
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%.
Shares of PepsiCo rose 3.3% on low volume in premarket
trading.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 03, 2019 07:16 ET (11:16 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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