Frito-Lay, Quaker profits climb in '08

by Eric Schroeder
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PURCHASE, N.Y. — Continued strong sales helped drive profit growth at the Frito-Lay North America and Quaker Foods North America subsidiaries of PepsiCo, Inc. during fiscal 2008.

F.L.N.A. operating profit in the year ended Dec. 27, 2008, was $2,959 million, up 4% from $2,845 million during fiscal 2007. Revenue in the segment was $12,507 million, up 8% from $11,586 million. For the fourth quarter ended Dec. 27, operating income was $806 million, down narrowly from $811 million, while sales rose 7% to $3,770 million.

"A broad innovation line-up is expected to contribute to continued top-line growth in 2009," the company said. "In the second quarter of 2009, F.L.N.A. intends to increase its value offerings to consumers on its corn-based Tostitos, Fritos, Cheetos and Doritos by adding 20% more product into its take-home bags without increasing the price."

Q.F.N.A. operating profit in the year was $582 million, up 2% from $568 million in fiscal 2007. Sales climbed 2% to $1,902 million. For the fourth quarter, operating profit was $160 million, down from $169 million, while sales were $610 million, up from $596 million.

The company said production returned to normal levels in the fourth quarter following a flood at its manufacturing facility in Cedar Rapids, Iowa, at the end of the second quarter.

Companywide, PepsiCo net income in fiscal 2008 totaled $5,142 million, equal to $3.21 per share on the common stock, down from $5,658 million, or $3.41 per share, during fiscal 2007. Net revenue was $43,251 million, up 10% from $39,474 million during fiscal 2007.

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