Business
PepsiCo Profit Sizzles, Boosts Outlook for Year; Shares Rise
This Feb. 9, 2011 file photo shows bottles of Pepsi at a grocery store in Springfield, Ill. PepsiCo reports quarterly financial results Wednesday, July 23, 2014. (AP Photo/Seth Perlman, File)
(Reuters) – PepsiCo Inc (PEP.N) raised its full-year earnings forecast and said snack sales helped its quarterly profit beat expectations, sending its shares up more than 1 percent in morning trading on Thursday.
The company, which makes Frito-Lay snacks and beverage brands like Mountain Dew and Tropicana, said its quarterly performance underscored how its beverage and snacks businesses worked well together.
Still, challenges remained and in developed markets, consumer demand “continues to be sluggish and in developing and emerging markets, there is continued macro and political volatility, most notably in Eastern Europe, the Middle East and a number of markets in Latin America,” Chairman and Chief Executive Indra Nooyi said on a conference call with analysts.
The activist investor Nelson Peltz’s Trian Fund Management had recently urged the company to split its more successful snack division from its sluggish beverage business, to reduce costs and unlock value for shareholders.
