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PepsiCo Sees Revenue Up 1.6% In First Quarter

By Steve Wynne-Jones
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PepsiCo Sees Revenue Up 1.6% In First Quarter

Beverage and snack-foods giant PepsiCo has posted a 1.6% increase in net revenue for the first quarter of the year, according to accounts just filed.

The firm posted earnings-per-share growth of 43% for the period, while organic revenue was up 2.1%.

Solid Revenue Growth

"We achieved solid revenue growth in the first quarter, underpinned by global volume growth and positive net-price realisation, despite challenging food- and beverage-industry trading conditions in North America and continued volatility in a number of developing and emerging markets," said chairman and CEO Indra Nooyi. "Our first-quarter results were in line with our expectations, and we are on track to achieve our financial objectives for 2017."

Europe And Africa

Its Europe-Sub-Saharan Africa (ESSA) division posted organic growth of 4% for the period, with food/snacks volume up 3.5% and beverage volume down 1%.

The group said that this division was "positively impacted by productivity gains. Additionally, the impacts of higher prior-year restructuring charges and a prior-year impairment charge associated with certain production assets in Russia contributed 29 percentage points and 13 percentage points to operating profit growth, respectively."

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However, PepsiCo noted that the ESSA division was partially offset by higher raw-material costs and impacted by unfavourable foreign-exchange effects.

Looking ahead to the coming year, PepsiCo said that it expects organic revenue growth of at least 3% for the full year.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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