PepsiCo, Inc. (NYSE:PEP) released its second quarter earnings results before opening bell this morning, posting adjusted earnings of $1.35 per share on $15.4 billion in revenue. Analysts had been expecting earnings of $1.29 per share on $15.37 billion in sales. In last year’s second quarter, the soft drink maker posted adjusted earnings of $1.32 per share on $15.9 billion in sales.

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PepsiCo’s profits rise

PepsiCo’s net earnings rose to $1.38 per share from $1.33 per share in the year-ago quarter. The company said currency exchange had a negative impact of 4 percentage points on revenue and 3.5 percentage points on reported earnings during the quarter. The soft drink maker’s reported gross margin expanded 115 basis points and reported operating margin expanded 105 basis points.

The company ‘s Frito Lay North America division saw a 4% organic increase year over year in sales, while Quaker Foods North America sales were flat organically. PepsiCo’s North America Beverages business saw a 1.5% organic increase in sales on the back of productivity gains and lower costs for raw materials. The Latin America segment recorded a 9% increase in sales as the business’ GAAP results were hit by inflation, a 21 percentage point negative impact from the Venezuela deconsolidation and other negatives. Europe Sub-Saharan Africa grew 3% organically, while Asia, the Middle East and Africa sales grew 5% organically.

“In what continues to be an incredibly volatile global macro environment, we are pleased with our results for the second quarter,” said PepsiCo Chairman and CEO Indra Nooyi in a statement. :While reported net revenue performance was negatively impacted by foreign exchange translation and the deconsolidation of our Venezuelan operations, we delivered balanced volume growth and positive price/mix driven by relentless execution of our commercial agenda and leading to solid organic revenue growth.”

PepsiCo raises guidance

PepsiCo management expects full-year core earnings of $4.71 per share, compared to their previous guide for $4.66 per share. They said the 53rd week of the year is expected to add about 1 percentage point to the growth in reported net revenue.

The company still expects raw material inflation in the low-single digits and plans to invest the benefit from the 53rd week in productivity and growth initiatives. It is targeting about $1 billion in productivity savings this year as well.

Shares of PepsiCo rose by as much as 1.68% to $107.70 during premarket trading hours on Thursday.