PepsiCo on Tuesday proclaimed a 2.2% net income growth for the second quarter of 2019 ending on June 15. The beverage leading company which reported $16.4 billion in sales in the quarter stated it had its Frito-Lay North America snack business and PepsiCo North America Beverage unit to thank for the growth with 4.5% and 2.5% sales lift respectively.
Reflecting on the results, PepsiCo Chairman & CEO, Ramon Laguarta, said: We are satisfied with the progress on our priorities to make PepsiCo a faster, stronger and better organisation by building new capabilities, extending our brands, adding capacity to grow and transforming our culture.
“Our performance for the first half and the progress we are making on our strategic priorities give us increased confidence in achieving the 2019 financial targets we communicated earlier this year.”
The food and beverage giant said that it is North American Quaker Foods business returned to growth in the quarter with 2.47% sales growth.
Foreign markets also recorded impressive results with Latin America registering a 2.33% sales growth, while Europe Sub-Saharan Africa posted marginal growth of 0.55%, and Asia, Middle East & North Africa declined by 1%.
PepsiCo noted that its net revenue and net income were negatively impacted by a 2-percentage-point foreign exchange translation headwind.
Second-quarter net income rose by 12.09% to $2.04bn, from $1.82bn in the previous year.
Looking forward to the rest of the year, the company said it expects full-year organic revenue growth of 4%.