PepsiCo hails a strong start to the year, thanks to boost from its snack business

PepsiCo Inc, on Wednesday reported sales growth of 2.5% for the first three months of the year to $12.9bn, thanks in part to strong revenue growth in its Frito-Lay North America snack business, which posted 5.47% sales rise. The company’s North American Beverages unit also helped fuel the quarterly growth with a 2.15% sales lift.

Commenting on the results, PepsiCo Chairman & CEO, Ramon Laguarta, said: “We are pleased with our results for the first quarter.

“Frito-Lay North America and each of our international divisions delivered particularly strong operating performance, and PepsiCo Beverages North America generated sequential quarterly net revenue acceleration.”

The company benefited from effective net pricing for some of its growth. For instance, while volumes for its North America Beverages business dipped 2% during the quarter, the company raised prices 4% helping boost sales by 2%.

PepsiCo also received a lot of help from its international businesses. The company’s Latin America business grew 1.39% in revenue, while the Europe Sub-Saharan Africa business posted a modest 1.5% revenue growth.

Net profit attributable to the company rose 5.2% to $1.41bn.

Looking forward to the rest of the year, the company said it expects to see more commodity inflation, and transactional forex will pressure commodities as well. It reiterated its 2019 targets, including 4% organic revenue growth.

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