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PepsiCo achieves better revenue growth in Q1

Published 27 April 2017

Softdrink giant PepsiCo has reported that its net revenue increased about 1.6% to $12.05bn for the first quarter 2017 from $11.86bn last year.

The company has made profits from its investments in ‘healthy’ beverages and snacks, whose demand has been on the rise. The company was also keen in keeping its costs to the minimum.

The company stated that about 45% of its net revenue comes from its investment in ‘guilt-free’ products.

These products include beverages with less than 70 calories per 12 ounces and snacks with lower amounts of saturated fats and salt.

In the recent years, more and more snacks and beverage-makers are investing in foods and drinks that offer healthier choice to their consumers.

PepsiCo expects that its gross profit will increase in this year’s second quarter. The company’s home market for beverages in North America saw an increase of 2.3% of revenue, which is $4.46bn.

Net income attributable to the company for the first-quarter of 2017 increased 41% to $1.32bn from the previous year's $931m. 

PepsiCo chairman and CEO Indra Nooyi said: “We achieved solid revenue growth in the first quarter underpinned by global volume growth and positive net price realization, despite challenging food and beverage industry trading conditions in North America and continued volatility in a number of developing and emerging markets.

"Our first quarter results were in line with our expectations, and we are on track to achieve our financial objectives for 2017."

Image: PepsiCo CEO Indra Nooyi. Photo: Courtesy of PepsiCo.