PepsiCo Q1 net profit up 26 per cent at $1.43 billion

Global beverages major PepsiCo Inc today reported a 26 per cent jump in its net income at $1.43 billion, or 89 cents per share, for the first quarter (21 December 2009 to 20 March 2010) against $1.14 billion, or 72 cents per share, in the similar quarter a year earlier.

Net income attributable to PepsiCo also rose 26 per cent to $1.43 billion from $1.135 billion in the similar quarter of the previous year.

Income before income taxes was 8 per cent lower at $1.40 billion against $1.52 billon in the similar quarter of the previous year.
 
Bottling equity income post acquisition of the main US bottlers rose to $709  million against a nominal $25 million in the previous year quarter.

Operating profit was down 47 per cent at $840 million from $1.59 billion in the similar 2009 quarter.
 
Sales cost of the beverages maker also rose 19 per cent to $4.46 billion in January-March 2010 from $3.74 billion in the corresponding previous year quarter.
 
Net revenue rose 13 per cent to $9.37 billion from $8.26 billion in the similar quarter of the previous year. 
 
PepsiCo said the solid results were driven by the acquisition of its two main bottlers and volume gains in its worldwide snacks and international beverage businesses.

Besides, the company said, its balanced investments in value and innovation, and lower costs across its operations also helped rake in revenues.

In the first quarter that ended on 20 March, excluding items such as a one-time gain on previously held equity interests, merger charges and the impact of Venezuela's currency devaluation, earnings were 76 cents per share, the company said.