Pepsi sees growth after Coca-Cola fizzles
After Coca-Cola's mixed results yesterday, rival Pepsi has reported higher earnings for the third quarter, with organic revenue growth of 3.3 per cent. Whereas Coca-Cola saw a decline in net revenues, which lagged behind forecasts, Pepsi reported soft net revenue growth of two per cent year-to-date.
Pepsi said it was on track to meet its financial goals for the year, despite ongoing global economic volatility in the markets. Chairman and chief executive officer Indra Nooyi said that the company expects to achieve its current 2013 goals, believing the right strategies are in place to make this happen. She added "we remain focused on growing our business by building our brands, innovating, driving marketplace execution, and delivering higher returns on invested capital through disciplined capital allocation."
Reported operating profit increase six per cent year-to-date, with reported operating margin decreasing 0.35 percentage points, following an eight per cent increase in marketing and advertising expenses.
The Americas Foods arm of the group grew, with revenue up seven per cent. And in the US – which is the company's largest market – salty snacks were highlighted as seeing growth in the quarter. This compares with Coca-Cola's growth of just one per cent in the Americas over the same period.
Pepsi says remains on target to deliver $900m (£760m) of productivity savings this year and return a total of $6.4bn (£5.41bn) to shareholders.