PURCHASE, N.Y. (
(PEP - Get Report)
matched profit expectations for the second quarter as net income and revenue grew by double-digits thanks to strength in its snacks division and in emerging markets. But the company will raise prices again as costs and weaker consumer spending pressure results.
Pepsi booked a second-quarter net profit of $1.89 billion, or $1.17 a share. On an adjusted basis, earnings came in at $1.21 a share, matching Wall Street's expectations. In the year-earlier period, Pepsi earned $1.6 billion, or $1.09 a share on an adjusted basis.
Net revenue increased 13.7% to $16.83 billion, topping expectations for a top line of $16.41 billion. Revenue a year ago was $14.8 billion.
Pepsi shares were 1.5% lower in premarket trading Thursday after closing 0.1% lower at $68.49 on Wednesday.
Pepsi said results were driven by revenue gains across its portfolio of global snacks and beverages businesses, and from the acquisition of Russian dairy and juice company
Pepsi also updated its full-year 2011 guidance, and now expects high-single-digit EPS growth on a core, 52-week basis, compared with a fiscal 2010 profit of $4.13 a share. Analysts expect Pepsi to earn $4.50 a share for the year.
Pepsi said worldwide snacks volume grew 10%, while worldwide beverage volume grew 5%.