PURCHASE, N.Y. — Strong sales and profit across Frito-Lay North America, Quaker Foods North America and Latin America Foods propelled a 9% gain in operating profit within the PepsiCo Americas Foods unit of PepsiCo, Inc. in the second quarter ended June 11. At $1,294 million, operating profit for PepsiCo Americas Foods was up from $1,192 million in the same period a year ago. Net revenue in the division also increased, rising 7% to $5,481 million from $5,112 million.
For the six months ended June 11, operating profit within PepsiCo Americas Foods was $2,453 million, up 9% from $2,260 million, while revenues rose 5% to $10,133 million from $9,642 million.
F.L.N.A., the largest segment within PepsiCo Americas Foods, posted a 6% gain in operating profit during the second quarter to $853 million. Net revenue also was higher, climbing 3% to $3,090 million from $2,992 million.
“F.L.N.A. increased volume 2% in the quarter reflecting especially strong performance in the convenience, dollar and drug channels, and each of the division’s five largest trademarks — Lay’s, Tostitos, Doritos, Cheetos and Ruffles — posted revenue growth driven by strong innovation,” PepsiCo said. “Both gross margins and operating margins expanded in the quarter reflecting the benefits of net revenue growth and productivity.”
For the six months ended June 11, F.L.N.A. operating profit was $1,627 million, up 6% from $1,528 million in the same period a year ago. Net revenue was $5,994 million, up 2% from $5,856 million.
Second-quarter operating profit at Q.F.N.A. rose to $167 million, up 6% from $159 million in the same period of fiscal 2010. Net revenue was virtually flat at $583 million, which compared with $582 million a year ago.
“Volume performance trends improved sequentially from the first quarter of 2011, driven by growth in hot cereal,” PepsiCo said. “Net pricing and productivity led to strong gross margin and operating margin expansion.”
For the six months ended June 11, Q.F.N.A. operating profit was $381 million, up 8% from $354 million, while net revenue eased 3% to $1,223 million from $1,265 million.
Latin America Foods posted the sharpest increase during the second quarter, as operating profit and net revenue each jumped 18% to $274 million and $1,808 million, respectively.
“Volume growth in the quarter reflected gains in the division’s largest markets, Mexico and Brazil, and double-digit growth in a number of other Central and South American markets,” PepsiCo said. “Growth was driven by a broad innovation agenda and strong promotions and marketplace execution. Operating profit growth benefited from a legal settlement included in the prior year.”
For the six months ended June 11, Latin America Foods operating profit was $445 million, up 18% from $378 million in the first half of fiscal 2010. Net revenue rose 16% to $2,916 million from $2,521 million.
Overall, net income at PepsiCo, Inc. in the second quarter totaled $1,885 million, equal to $1.17 per share on the common stock, up 18% from $1,603 million, or 98c per share, in the same period a year ago. Net revenue was $16,827 million, up 14% from $14,801 million. For the six months, net income was $3,028 million, or $1.89 per share, down narrowly from $3,033 million, or $1.87 per share, in the same period a year ago. Net revenue was $28,764 million, up 19% from $24,169 million.