PepsiCo Q3 2012 earnings drop 5%
PepsiCo has reported a 5% drop in third-quarter (Q3) earnings due to higher costs, more spending on advertising and unfavorable foreign exchange translation.
Emerging and developing market net revenue declined 13%, primarily due to beverage re-franchisings in China and Mexico.
On an organic basis, emerging and developing market net revenue grew 11%.
While reported net revenue in Asia, Middle East & Africa, and Europe declined 21% and 6%, respectively, organic net revenue grew 10% and 7%, respectively.
PepsiCo chairman and CEO Indra Nooyi said: "Our disciplined pricing and sustained investment in brand building drove 5 percent organic net revenue growth reflecting 1 percent organic volume growth and 4 percent effective net pricing."
The company's sports drink Gatorade results also dragged down the Americas Beverages division and carbonated drinks, meanwhile, had flat sales volume, reported The Wall Street Journal.
PepsiCo had earlier this year introduced a turnaround campaign to reduce expenses and introduce a range of new products to regain its market share it ceded to rival Coca-Cola.