New York: PepsiCo, the maker of Pepsi soft drinks and Tropicana juices, said Monday its first quarter net profit slipped 1.1% to $1.14 billion, above market forecasts.
Pepsico said its first quarter to 21 March operating profit, excluding exceptional items, came to 71 cents a share, above analyst forecasts for 67 cents. Sales fell 1% to $8.26 billion in the three-month period.
PepsiCo also said it planned to pay $6 billion to obtain full control of two of its main bottling operations, Pepsi Bottling Group and PepsiAmericas.
The company, which also makes snack foods, said it would pay $29.50 per share and $23.27 per share, respectively, to buy out minorities in the two bottlers.
The acquisition, paid half in cash and half in PepsiCo shares, would ensure the company directly controlled 80% of its North American sales and add more than $200 million to pretax earnings annually via cost reductions, economies of scale and greater efficiency.