PepsiCo Hikes Q3 Profits by 35%

04 October 2004

Foods, snacks and beverages multinational PepsiCo on Friday reported third quarter earning sharply up by 35%. Net income rose year-on-year to $1.36 billion (€1.1bn; £751.8m) from $1.01bn, ahead of Wall Street expectations.

Much of PepsiCo's growth comes from its non-beverage divisions, notably Frito-Lay Snacks (Walkers Snack Foods in the UK) and the recently acquired Quaker Foods.

Across the board volume growth rose 4% worldwide, with an especially strong performance from the international division where total gross revenues increased by 6% to $7.26bn. Growth was especially strong in the Asia-Pacific region, notably in China and India.

North American performance was less rosy. Summer had been difficult for the beverage business, with comparisons skewed by retail price increases in carbonated drinks, chilly weather, and altered timings for the Memorial Day and Labor Day holidays.

Data sourced from Financial Times; additional content by WARC staff