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CORRECTED-UPDATE 1-PepsiCo raises profit forecast as North America snack sales rise
July 23, 2014 / 12:01 PM / 3 years ago

CORRECTED-UPDATE 1-PepsiCo raises profit forecast as North America snack sales rise

(Corrects to say in paragraph 7 that the full-year earnings per share forecast excludes an expected 4 percentage point impact from changes in foreign currency rates. Removes reference to average analyst estimate, which was not comparable.)

July 23 (Reuters) - PepsiCo Inc reported a higher-than-expected quarterly profit and raised its full-year adjusted earnings forecast, helped by strong sales of snacks such as Lays and Doritos chips in North America.

Shares of the maker of Pepsi-Cola, Frito-Lay snacks and Tropicana juice rose 2.3 percent to $91.25 before the bell.

The company said organic revenue grew 5 percent in its global snacks business, partly due to price hikes.

Organic revenue rose 2 percent in its beverages business.

Snack volumes in North America grew 2.5 percent, but soda volumes fell 2 percent, as health-conscious consumers favored juices and health drinks.

Rival Coca-Cola Co reported on Tuesday flat soda volumes in North America for the second straight quarter.

PepsiCo raised its full-year earnings per share growth forecast to 8 percent from 7 percent, before taking into account foreign exchange rates that it said could reduce earnings growth by 4 percentage points.

PepsiCo’s net income fell 2 percent to $1.98 billion, or $1.29 per share, in the 12 weeks ended June 14 from $2.01 billion, or $1.28 per share, a year earlier.

Excluding items, the company earned $1.32 per share.

Revenue rose 0.5 percent to $16.89 billion.

Analysts on average had expected PepsiCo to earn $1.23 per share on revenue of $16.81 billion.

The company’s shares have risen 7.5 percent this year to Tuesday’s close. (Reporting by Anjali Athavaley in New York and Siddharth Cavale in Bangalore; Editing by Kirti Pandey)

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