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PepsiCo Q1 2013 net revenue declines

RBR Staff Writer Published 19 April 2013

Global beverage giant PepsiCo net revenues edged up 1% to $12.58bn in the first quarter of 2013, compared to $12.43bn in the corresponding period a year ago.

Operating profit in the period amounted to $1.66bn, a 4% decline on the year.

The chain's net income was up to $1.08bn in the first-quarter 2013 from $1.13bn in the same period a year ago.

Organic revenue grew 4.4%, driven by balanced volume growth and effective net pricing.

According to the company, structural changes, mainly refranchising in China, adversely impacted reported net revenue performance by 3% points and foreign exchange translation had a 0.5%-point unfavorable impact in the quarter.

Sales from its PepsiCo Americas Foods arm grew 6%. Revenue from PepsiCo's Frito-Lay North America snack unit increased 4% in the quarter.

PepsiCo chairman and CEO Indra Nooyi said that the company has delivered solid organic revenue growth and double-digit EPS growth in the first quarter.

"We are driving increased marketplace execution and making higher investments in marketing and innovation to drive future growth," Nooyi added.

"Importantly, we're laser focused on ramping up the effectiveness and efficiency of every aspect of our operating system, from procurement to manufacturing to selling and distribution.

Commenting on future plans, Nooyi added, "For the full year 2013, we expect to deliver approximately $900 million in productivity savings as part of our three-year, $3 billion productivity program, which will fund future growth investments and further enhance our operating margins."