Pepsi reports strong growth

09/02/06 PepsiCo reported continued strong top line growth across all its businesses in the fourth quarter, with global servings volume up over 9% and net revenue up 15%. The results include the favorable impact of an extra reporting week in 2005. Excluding the extra-week impact, volume increased over 7% and net revenue was up 10%.

Chairman and CEO Steve Reinemund said, "We're very pleased with the results for the quarter and for the full year. Our top line has shown consistently strong growth throughout the year, and earnings were strong despite a challenging input cost environment. Importantly, we've made investments in the marketplace and in productivity that, together with our top-line momentum, gives us confidence as we enter 2006."

For the full year, servings volume grew 7% and net revenue was up 11%, with the extra reporting week contributing approximately one point of growth.

The news came as PepsiCo revealed that it will committed half of this year's advertising budget in its US salty snack food business to healthier products, in response to consumer demand for less fattening and more nutritious food and drink. The decision is part of a broader shift in focus by the US group away from its sugary soft drinks and fatty snacks towards a healthier range of products.