PepsiCo Reports 16 Percent Fall in Profits but Lower Commodity Costs Help US Business
15 Feb 2016 --- PepsiCo has reported a 16 percent fall in full year profits to $5.5bn but lower commodity costs helped the performance of key US businesses Quaker Foods and Frito-Lay.
The US food and beverage giant reported that full year revenues were down five percent to $63bn after it was hurt by the strength of the dollar and “choppy” economic conditions.
However, its US business, which accounts for 56 percent of sales, performed well helping offset a fall in net sales from international markets which dropped 14.4 percent compared to 2014.
Organic revenues at its Quaker Foods cereal business were up one percent on the year; 3 percent up across Frito-Lay, which makes Doritos and Ruffles; and one percent up across its North American Beverage business, home to Pepsi and sports drink Gatorade.
Chairman and chief executive Indra Nooyi said: “Our portfolio has been strategically been designed to weather the current macroeconomic challenge.”
“While facing the challenge of a choppy macroeconomic environment, we continued to make thoughtful investment in our future.”
“By making investment in our brands, product innovation and supply chain, we have fortified our business for sustained growth.”
PepsiCo said it had upped its marketing and advertising spend, as it looked to drive awareness of its brands.
Its results were impacted by the $1.4bn charge to desconsolidate its Venezuela operations.
Looking ahead, PepsiCo projected a flat revenues for the year ahead.
All content and features on this website are copyrighted with all rights reserved. The full details can be found in our privacy statement
