From PepsiCo, Inc. (NYSE:PEP) (note: the company is fighting off Nelson Peltz’s Trian Capital – the hedge fund has called for a break up of PepsiCo)
Attached please find PepsiCo’s second quarter earnings press release. Below are key highlights for the quarter.
Also attached is our earnings infographic.
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- Strong beat in Q2.
o Core EPS of $1.32; First Call consensus was $1.23. 10th consecutive quarter of meeting or beating consensus EPS estimates.
o Reported net revenue of $16.9 billion. First Call consensus was $16.8 billion.
o Delivered 3.6% organic revenue growth, with growth in each of our four business units.
o Core gross margin expanded 60 basis points, reflecting implementation of effective revenue management strategies and productivity initiatives.
- Raising core constant currency full-year EPS growth guidance.
o Based on our strong year-to-date results and outlook for the remainder of the year, we are increasing our full-year, core constant currency 2014 EPS growth outlook to 8% (previously 7%).
o We are on track to achieve our long-term targets, including mid-single digit organic revenue growth and high-single digit core constant currency EPS growth.
- Complementary food and beverage portfolio and global reach driving performance.
o Organic revenue grew 5% for global snacks and 2% for global beverages.
o PAF delivered 4% organic revenue growth.
o PAB delivered 1% organic revenue growth, with NAB holding or gaining value share in key product areas including CSDs, sports drinks, ready-to-drink tea and chilled juice.
o Europe delivered 5% organic revenue growth.
o AMEA delivered 7% organic revenue growth.
o Delivered 8% organic revenue growth in developing and emerging markets.
- New product innovation continues to help drive top line growth.
o PepsiCo food and beverage portfolio was the largest contributor to retail sales growth in North America in Q2 (according to IRI Data 12 weeks ending June 15, 2014).
o Recent successes include:
- Doritos Loaded and Mountain Dew Solar Flare, in partnership with 7-Eleven;
- Pepsi Spire our state-of-the art beverage dispensers that allow consumers to create more than 1,000 customized beverages.
- Limited edition Mountain Dew Baja Blast at retail;
- Pepsi-Cola Real Sugar in regular, wild cherry, and vanilla;
- France team converted Quick, the country’s second-largest quick service restaurant, by using our culinary expertise and combined food and beverage portfolio;
- Exclusive food and beverage agreement with VOX Cinemas in the Middle East.