PepsiCo Inc posted quarterly profit that was better than had been expected helped by better demand for its Frito-Lay snack food in North America and the sale of beverages across the Americas.
Frito-Lay revenue was up by 3.1% to end the quarter at $3.32 billion. At the same time, revenue from its beverage business, rose just marginally to $4.42 billion. Revenue in the beverage business has been hit by the decline over a long period in sales of soft drinks.
Hugh Johnson the PepsiCo CFO said that the Americas had done very well during the quarter and that Frito-Lay increased from the standpoint of volume.
The net revenue for PepsiCo fell 3.2% to just over $12.22 billion during the first three months of 2015. The company said the decline was attributed to the impact of a strong dollar and said that revenue was up 4.4% organically.
The company receives as much as 30% of overall revenue from outside the United States.
Rival soft drink maker Coca-Cola reported a revenue increase for the first time in its past 9 quarters earlier in the week helped by an increase of 6% in North America.
The U.S. dollar, which has increased by 8.5% against a host of major world currencies in 2015, will hurt revenue for 2015 by close to 10% and its earnings by 11%, said PepsiCo.
The company announced that a strong dollar would hurt its revenue and earnings for the full year by close to 7%.
PepsiCo attributable net income was $1.22 billion for the quarter ending March 21, but its per share earnings were up from 79 cents to 81 cents.
Excluding certain items, PepsiCo had earnings of 83 cents a share. Analysts were predicting profit would be 70 cents a share with revenue coming in at $12.17 billion.
PepsiCo has surpassed the profit estimates of Wall Street for 13 consecutive quarters including this most recent quarter.
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