PepsiCo’s weak US numbers from its snacks and beverage business was offset by demand in the Middle East and emerging markets, according to the company’s latest figures.
Revenues at PepsiCo rose by 27% to US $11.93 billion in the first quarter, up from $9.3 billion in the same quarter a year ago and beating Wall Street analysts’ estimates.
“Growth in emerging markets was strong, driving attractive gains in Eastern Europe, Asia and the Middle East,” said Indra Nooyi, PepsiCo’s chief executive.
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Sales of snacks grew by 3%year-on-year, but growth was stunted by declines in North America and Brazil. Beverage volume grew by 12% globally and by 2% in North America.
While carbonated soft drinks sales volumes were low compared to last year, demand for non-carbonated beverages was up by 7%.
Hugh Johnston, chief financial officer, said that PepsiCo is dealing with “a high level of input cost inflation” and is using “prudent pricing actions and systematic hedging” to manage rising commodity prices.
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