PEP PepsiCo Inc

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)

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