PepsiCo Financial Report Shows Significant Growth for Frito-Lay North America

Frito-Lay North America have been positively impacted by productivity gains and lower raw material costs, partially offset by operating cost inflation and higher advertising and marketing expense, according to PepsiCo Reports First Quarter 2016 Results.

The net revenue for Frito-Lay North America recorded a growth of 3 per cent comparing to the first quarter of 2015. Net revenue registered a value of USD 3,418 million in 2016 while in 2015 it was USD 3,319 million.

The operating profit for the same brand rose by 11 per cent, from USD 920 million in 2015 to USD 1,018 million in 2016.

New products contributed significantly to revenue growth

At the same time, new product launches have contributed “significantly” to overall organic revenue growth for PepsiCo Inc., according to Indra Nooyi, chief executive officer of the Purchase-based company.

For the first quarter ended March 19, net income attributable to PepsiCo was USD 931 million, equal to 64c per share on the common stock, down 24 per cent from USD 1,221 million, or 81c, for the prior-year period. Net revenue for the quarter fell 3 per cent to USD 11,862 million from USD 12,217 million. On a constant currency basis, core earnings per share grew 11 per cent and organic revenue grew 3.5%.

"Our marketing initiatives and new product launches are generating solid organic top line growth, and our focus on driving greater efficiency throughout our operations contributed significantly to attractive core gross margin expansion," said Chairman and CEO Indra Nooyi. "We are off to a strong start to the year and that gives us added confidence in achieving our financial objectives for 2016."