PepsiCo Inc., the No. 2 soft-drink maker, said Thursday its second-quarter profit jumped 14 percent, helped by sales of non-carbonated beverages and overseas growth in snacks and drinks.
Profit for the quarter ended June 17 grew 14 percent to $1.36 billion, or 80 cents per share, from $1.19 billion, or 70 cents per share, during the same period last year.
Revenue at the Purchase, N.Y.-based company climbed 12 percent to $8.6 billion from $7.7 billion last year.
Analysts, on average, predicted a profit of 77 cents per share on revenue of $8.3 billion.
Based on its strong growth in the first half of the year, PepsiCo revised up its 2006 guidance and said it expects earnings of at least $2.95 a share. Analysts predict a profit of $2.96 per share.
“Each of our operating divisions contributed to both top- and bottom-line growth and did a fine job of managing through a challenging input cost environment to deliver very solid results,” Chief Executive Steve Reinemund said in a statement.
Revenue at the North America division grew 13 percent, while volume was up 8 percent. North American volume growth was driven by a 23 percent jump in non-carbonated beverages, including Gatorade, Aquafina, Lipton teas, Tropicana and Propel. Carbonated soft drink sales declined 1 percent.
The company reported double-digit percentage gains in volume for both snacks and beverages sold outside North America. Snack volume was up 11 percent, led by gains in Mexico, Russia, Turkey, Egypt, Australia and India. And beverages rose 10 percent with increased volume in the Middle East, China and Argentina. International revenue grew 14 percent.
“Our international business had another outstanding quarter,” Reinemund said.
PepsiCo’s Frito-Lay snack division saw its revenue grow 8 percent, while volume was up 4 percent. Lay’s, Cheetos and Tostitos sales rose, while Doritos sales declined.
Quaker Foods North America had revenue growth of 7 percent while volume was up 3 percent, helped by sales of Quaker Oatmeal and Cap’n Crunch and Life cereal.
The company said it expects cash from 2006 operating activities to exceed $6.2 billion. It also expects net capital spending of approximately $2.2 billion, and share repurchases of about $3 billion.
