Pepsi expects more growth - strong dollar but slows down
The soft drink and snack manufacturer Pepsico <US7134481081> is confident that it will be able to achieve greater sales growth this year on its own. At the same time, however, the strong US dollar should reduce profits more than expected, as Pepsi announced on Tuesday.
In organic terms, revenues for the year as a whole are now expected to grow by at least 3 percent. Previously, the Group had assumed growth of 2.3 percent, as in the previous year. Acquisitions and currency effects are excluded from the sales forecast. The latter, however, have an impact on profits. Adjusted earnings per share for the full year are expected to be only 5.65 dollars, 5 US cents less than previously expected. Adjusted for currency effects, however, management still sees the profit increase at 9 percent.
Pepsi is particularly confident about the Frito-Lay snack division, which is providing solid growth with its potato and tortilla chips (Cheetos, Doritos) and other snacks popular in the USA. In the third quarter, Group sales increased by 1.5 percent to 16.5 billion US dollars (14.3 billion euros). Organic growth was 4.9 percent. Thanks in part to tax effects, profit increased by 16 percent to just under 2.5 billion dollars. Pepsi thus exceeded analysts' expectations./she/stw/jha/ (dpa)
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