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PepsiCo's shares rose 2.2 percent in premarket trading after the
maker of Pepsi, Gatorade and Tropicana also raised its adjusted
profit forecast for the year.
New drinks such as Propel flavored water and Naked Cold Pressed
juice, and snacks under its "Simply" brand helped drive sales,
the company said.
PepsiCo's cost of sales fell 6 percent in the three months ended
June 11.
That helped net income attributable to PepsiCo increase 1.3
percent to $2.01 billion, or $1.38 per share.
Excluding items, the company earned $1.35 per share, beating the
average analyst estimate of $1.30, according to Thomson Reuters
I/B/E/S.
Net revenue fell 3.3 percent to $15.395 billion, but inched past
the average analyst estimate of $15.37 billion.
Net revenue in the North America Beverages unit, PepsiCo's
biggest business, rose 1 percent – the slowest growth since the
company started breaking out beverage sales from the region a
year ago.
Revenue from the Frito-Lay business, which includes Doritos,
Lay's and the Simply line of snacks, rose 3 percent. New snacks
launched under the Simply brand included Simply Tostitos black
bean chips and organic chunky medium salsa.
PepsiCo said it now expects 2016 adjusted earnings of $4.71 per
share, up from its previous forecast of $4.66 per share.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Savio
D'Souza)
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