Pepsico shrugs off ad uproar and maintains guidance

A move toward healthier snacks and drinks gave PepsiCo Inc (NYSE:PEP) a lift in its latest quarter though investors seemed unimpressed.

The Pepsi Cola owner has been on the back foot after being lambasted for poor taste after an advert last month that featured model Kendall Jenner caused uproar and had to pulled.

Net profits in the quarter rose 41% to US$1.33bn on sales of US$12bn, up 2% helped by higher prices and its low sugar, salt and fat ‘guilt-free’ product  drive.

Indra Nooyi, chief executive, said the better than expected performance came in spite of a tough North American market and issues in a number of emerging markets.

Beverage sales, which also include Gatorade, were flat in the quarter. Frito Lay Volumes dropped slightly as did volumes at Quaker Foods.

Even so, guidance for the full year was maintained with organic revenues slated to grow 3%, though the actual number may be adversely affected by currencies.

Core earnings per share for the year should be US$5.09, Pepsi said.

Shares eased 1.5% to US$112.44. 

Story by ProactiveInvestors