New York: PepsiCo Inc. posted third-quarter profit that topped analysts’ estimates and boosted its forecast for the year after raising prices on its drinks and snacks.
Earnings were $1.35 a share in the three months ended 5 September, the Purchase, New York-based company said in a statement on Tuesday. Analysts estimated $1.26, according to data compiled by Bloomberg.
Chief executive officer Indra Nooyi has been cutting costs and seeking new sources of growth from emerging markets. She also has boosted prices on the company’s products, with effective net pricing rising 2% in the Frito-Lay North America and North America Beverages divisions. While total sales fell 5.2% to $16.3 billion, that topped analysts’ $16.1 billion average projection.
PepsiCo also said core constant currency earnings per share will grow 9% this year. That’s up from a forecast of 8% in July.
Shares of the company rose 1.2% to $97 at 6:31 am in early trading in New York. The stock was up 1.3% this year as of Monday. Bloomberg
