PURCHASE, N.Y., July 23, 2014 /PRNewswire/ -- PepsiCo, Inc. (NYSE: PEP) today reported organic revenue growth of 3.6 percent and core earnings per share of $1.32 for the second quarter.
"Despite operating in what continues to be a challenging and volatile macro environment, we are delivering consistent, strong results," said Chairman and CEO Indra Nooyi. "Our results reflect the power of our portfolio of products and brands, and the strength of our geographic footprint. They also reflect the hard work we've done to position our business for sustainable success. Based on the strength of our year-to-date results and our outlook for the remainder of the year, we're increasing our full-year, core constant currency EPS growth target to eight percent."
Summary of Second Quarter Financial Performance:
- Organic revenue grew 3.6 percent and reported net revenue grew 0.5 percent versus the prior-year quarter. Foreign exchange translation had a 3-percentage-point unfavorable impact on reported net revenue and structural change related to the 2013 refranchising of the company's bottling operations in Vietnam had a slight negative impact in the quarter.
- Organic revenue grew 5 percent for global snacks and 2 percent for global beverages in the quarter. On a reported basis, net revenue grew 2 percent for global snacks, reflecting unfavorable foreign exchange translation, and declined 1 percent for global beverages, reflecting unfavorable foreign exchange translation and theVietnam refranchising.
- Developing and emerging market organic revenue grew 8 percent in the quarter. On a reported basis, developing and emerging market net revenue declined 1 percent in the quarter, reflecting the Vietnam refranchising and unfavorable foreign exchange translation.
- Core EPS was $1.32 and reported EPS was $1.29. Core EPS excludes a positive net impact of $0.01 per share related to mark-to-market net gains on commodity hedges and a $0.04 per share negative impact from restructuring and impairment charges. Mark-to-market net gains and losses on commodity hedges are subsequently reflected in core division results when the divisions recognize the cost of the underlying commodity in operating profit.
- On track to deliver targeted $1 billion of productivity savings in 2014.
Frito-Lay North America (FLNA)
Organic and reported net revenue increased 2 percent in the quarter, reflecting volume growth in an otherwise sluggish period for the U.S. packaged food industry. Core constant currency operating profit grew 5 percent in the quarter, reflecting organic revenue gains, productivity savings, a favorable actuarial adjustment driven by improved safety performance and lower commodity costs, partially offset by operating cost inflation. Full report.