PURCHASE, N.Y. — Operating profit and net revenue rose in the first quarter for Frito-Lay North America, a business of PepsiCo, Inc., behind effective net pricing. However, Quaker Foods North America, another PepsiCo business, reported declines.
Within F.L.N.A. in the quarter ended March 24, operating profit grew to $780 million, which compared with $774 million in the previous year’s first quarter, and net revenue rose to $3,010 million from $2,904 million. Net revenue growth reflected 6 percentage points of effective net pricing. Revenue growth within F.L.N.A. was particularly strong in the convenience store, dollar and food service channels, according to PepsiCo.
Within Q.F.N.A. in the first quarter, operating profit declined to $187 million from $214 million. An inventory accounting change recorded in the prior year contributed 7 percentage points to the decline. Q.F.N.A. first-quarter revenue fell to $623 million from $640 million. The revenue decline and a volume decline of 5% reflected general category trends, according to PepsiCo.
While companywide net income stayed basically flat in the first quarter, PepsiCo net revenue rose 4% as the company effectively raised prices. Net income of $1,127 million, equal to 71c per share on the common stock, in the first quarter ended March 24 compared with $1,143 million, or 71c per share, in the first quarter of the previous year. Net revenue of $12,428 million compared with $11,937 million.
|Sign up for our free newsletters
From breaking news to R&D insights, we’ll send you the top stories affecting the industry.