New York: Soft drinks and snack maker PepsiCo said on Wednesday its second-quarter profit fell 2% as sales dropped 3%, but it still beat analyst expectations.
The company reiterated its expectation that 2009 profit will grow by a mid- to high-single digit percentage over 2008 profit of $3.68 per share. It said it has used pricing strategy, new products and cost controls to help it navigate the dour economy.
The maker of Pepsi cola and Frito-Lay snacks earned $1.66 billion, or $1.06 per share, in the three months that ended 13 June. That’s down from the $1.7 billion, or $1.05 per share, a year earlier.
Purchase, New York-based PepsiCo, which also sells the Gatorade and Tropicana brands, said revenue slumped 3% to $10.59 billion from $10.95 billion.
In North America, revenue on a constant currency basis fell 7% as demand continued to be weak for soft drinks. And sales of Gatorade continued to fall, the company said, as consumers turned to cheaper alternatives. Still, the lower-calorie sports drink G2 posted double-digit volume growth.
Analysts polled by Thomson Reuters had expected profit of $1 per share on revenue of $10.99 billion.