Interesting news from PepsiCo, highlighting that while increases prices can lead to a reduction in volumes, overall profit increases can still be achieved.
Their operating profit rose by 8 per cent, which was followed by a decrease in revenue by 1 per cent. PepsiCo’s CEO, Indra Nooyi points out that they are looking carefully at the trade-off between volume, pricing and profit and are pleased with the recent results.
In line with the recent results, John Faucher, a JP Morgan analyst said that: “”The business momentum continues to look solid”.
For PepsiCo overall, sales volume rose 4 per cent for snacks and 3 per cent for beverages For the full year PepsiCo said it still expects 2013 earnings to grow 7 per cent from the $4.10 per share it earned in 2012. Due to market volatility, PepsiCo were advised not to increase their 2013, but overall, the 2013 forecast looks promising for the corporation.