Skip to main content

Pepsi bottles are seen on display in New York.


PepsiCo Inc. reported a higher-than-expected quarterly profit on Wednesday, helped by price increases, and stood by its full-year outlook.

The maker of Diet Pepsi, Frito-Lay snacks and Tropicana orange juice said second-quarter net income had fallen to $1.49-billion, or 94 cents per share, from $1.89-billion, or $1.17 per share, a year earlier.

Excluding items, earnings were $1.12 per share, topping the analysts' average estimate of $1.09, according to Thomson Reuters I/B/E/S.

Story continues below advertisement

Revenue fell 2 per cent to $16.5-billion, in line with Wall Street estimates.

The company affirmed its 2012 outlook, which calls for earnings per share to fall 5 per cent from the $4.40 it earned in 2011. It expects revenue to grow by a mid-single-digit percentage rate, excluding the reduction from refranchising its businesses in China and Mexico.

PepsiCo said it still expected foreign exchange rates to hurt earnings-per-share growth by 3 percentage points as a stronger U.S. dollar reduces the value of overseas sales.

Report an error

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨