PURCHASE, N.Y. — First-quarter profit for PepsiCo, Inc. was down slightly as the result of a stronger dollar and continued weak demand for carbonated beverages. However, results were still above analysts’ expectations.
For the quarter ended March 21, PepsiCo had a net income of $1,141 million, equal to 72c per share on the common stock, down 1% from $1,152 million, equal to 70c per share, during the same quarter of the previous year.
Revenue for the quarter was $8,263 million, down 1% from $8,333 million during the same quarter of the previous year.
"I am pleased with PepsiCo’s overall performance in the quarter," said Indra Nooyi, chairman and chief executive officer. "Our portfolio breadth, geographic reach and operating agility enabled us to deliver strong performance in a challenging global macroeconomic environment. Worldwide, our teams adapted their operating models from refreshing our beverage lineup to devising new value initiatives to enhancing revenue management and expanding Power of One initiatives.
"In addition to meeting our near-term financial commitments, we are focused on delivering growth over the long-term by continuing our investments in brand building, innovation and supply-chain transformation. In spite of the economic slowdown, all of our businesses are performing at or above expectations, which gives me confidence in reaffirming our full-year guidance."
Operating profit for subsidiary Frito-Lay North America was $697 million, up 10% from $633 million during the same quarter of the previous year. Revenue for the division was $3,000 million, up 10% from $2,730 in the same quarter of the previous year.
Quaker Foods North America, another subsidiary, had an operating profit of $175 million, up 5% from $166 million during the same quarter of the previous year. Revenue was $485 million, down 2% from $495 million during the same quarter of the previous year.
The company is affirming its full-year guidance for both net revenue and earnings per share to assert mid to high single-digit constant currency growth.