PepsiCo Reports Second Quarter 2015 Results, Increases Full Year Earnings Outlook

July 9, 2015

PURCHASE, N.Y.July 9, 2015 /PRNewswire/ -- PepsiCo, Inc. today reported organic revenue growth of 5.1 percent and core earnings per share of $1.32 for the second quarter.

Organic/core results

  • Organic revenue grew 5.1 percent
  • Core gross margin expanded 115 basis points   
  • Core EPS was $1.32    
  • Core constant currency EPS increased 11 percent    

Reported (GAAP) results

  • Net revenue declined 6 percent reflecting a 10-percentage-point impact of adverse foreign currency translation   
  • Gross margin expanded 105 basis points   
  • EPS increased 3 percent to $1.33   

2015 outlook   

  • Core constant currency EPS growth target raised to 8 percent (previously 7 percent)   
  • Foreign exchange translation expected to adversely impact core earnings per share by 11 percentage points   
  • On track to deliver approximately $1 billion productivity savings and $8.5 to $9 billion cash returns to shareholders

 Frito-Lay North America (FLNA
Positively impacted by productivity gains and lower commodity costs, partially offset by operating cost inflation and an increase in advertising and marketing expense.

Quaker Foods North America (QFNA) 
Negatively impacted by an increase in advertising and marketing expense, partially offset by favorable product mix. Productivity gains more than offset operating cost inflation.

PepsiCo Americas Beverages (PAB) 
Positively impacted by productivity gains, lower commodity costs and certain insurance adjustments, partially offset by operating cost inflation. View the full report here.