PepsiCo’s second quarter revenue and profit results beat Wall Street expectations, based on the strong performance of its Frito-Lays snack division. Frito-Lays posted operating profit growth of five per cent and revenue growth of four per cent, according to a report in Food Dive.
PepsiCo’s profit still slipped 14 per cent to $1.82 B, thanks to higher raw materials and tyransportation costs, while net revenue jumped 2.4 per cent to $16.09 B.
Sales in North America slipped for the fourth period in a row, and the North American beverage unit’s revenue dropped 0.9 per cent to $5.19 B.
PepsiCo says its focus on healthier drinks like LifeWtr bottled water have cut into the performance of core brands like Gatorade and Pepsi. In response, the company has increased advertising spending on these brands, but it adds that it will take several quarters to get “back on track.”