- PepsiCo Inc. reported a decrease in overall profits for its third quarter due to charges related to its Venezuelan business, falling to $533 million from $2.01 billion in the same quarter last year.
- Even with those charges, the company's quarterly revenue, which declined to $16.33 billion from $17.22 billion last year due to foreign currency headwinds, still beat Wall Street expectations, according to the Associated Press. Organic revenue increased by 7.4%.
- PepsiCo has boosted its earnings outlook for the year to an expected 9% increase this year, a full percentage point above its previous estimate. In its last earnings report released in July, the company had increased the outlook from 7% to 8%.
Indra Nooyi, PepsiCo's CEO, noted the company can't only focus on its signature product. "I think focusing on just (carbonated soft drinks) is a thing of the past," she said. Soda on the whole has seen sales fall for the tenth year in a row.
PepsiCo's ability to balance out foreign currencies that lowered the company's top line comes in part from lower overhead costs, which, along with other cost-cutting measures, helped increase gross margin for the 13th quarter in a row. Last week, PepsiCo announced more than $375 million in savings from its sustainability initiatives alone since 2010.
PepsiCo reported its North America snack volume increased by 0.5%, and sales for the segment saw a 2% uptick thanks to pricing. The snacking industry is growing considerably in the U.S., so it wouldn't be surprising to see the company have a renewed focus on these divisions.
Even the company's North America drinks business enjoyed a 3% rise in volume, and increased pricing pushed up this segment's revenue as well, by 5% for the quarter. This segment includes products like Gatorade and Aquafina water as well as the company's soda products. Since increasing pricing last quarter, PepsiCo has seen revenue successes in both categories.