PepsiCo Q4 results top Wall Street's expectations; 2013 in line with goals

ATLANTA: PepsiCo Inc reported a higher-than-expected fourth-quarter profit on Thursday, helped by increases in sales volume and prices, and gave a 2013 forecast consistent with its ongoing turnaround plan.

The maker of Gatorade sports drinks and Quaker oatmeal forecast 2013 earnings, excluding any impact from currency, to grow 7 per cent from the $4.10 per share it earned in 2012, a "transition year" in which profit fell 5 per cent.

In the just-ended fourth quarter, net income was $1.66 billion, or $1.06 per share, up from $1.42 billion, or 89 cents per share, a year earlier.

Excluding special items, earnings were $1.09 per share. Analysts on average were expecting $1.05 per share, according to Thomson Reuters I/B/E/S.

Net revenue fell 1 per cent to $19.95 billion. Excluding the effect of items including selling some businesses, an extra selling week in 2011 and currency exchange rates, revenue increased 5 per cent.

Chief Executive Officer Indra Nooyi has increased marketing to boost sales of brands such as Lay's, Mountain Dew and Gatorade. Nooyi has also put renewed focus on US soft drinks, including its flagship Pepsi-Cola, to revive lagging beverage sales and regain market share from Coca-Cola Co.

Coca-Cola, based in Atlanta, said Feb. 12 that net income rose 13 per cent to $1.87 billion as sales of non-carbonated drinks in North America such as Powerade helped counter lower demand in Europe. Revenue advanced 3.8 per cent to $11.5 billion, less than analysts estimated.

PepsiCo, the world's second-largest soft drink maker, rose 0.9 per cent to $71.50 on Wednesday in New York.