, the global food and beverage colossus, said Thursday that its second-quarter earnings jumped 24% from a year ago, beating Wall Street expectations as sales surged for the company's snack foods, juices and its flagship Pepsi cola.
PepsiCo's net income rose to $563 million, or 38 cents a diluted share, vs. a pro forma $467 million, or 31 cents a share, in its fiscal second quarter ended June 10. The consensus of analysts polled by
First Call/Thomson Financial
had forecast earnings of 36 cents a share.
Purchase, N.Y.-based PepsiCo said the results were helped by higher profits in each of its five divisions.
Sales for the company rose 8.9% to $4.9 billion, vs. $4.5 billion in the same quarter in 1999.
Sales growth was led by the company's
snack division, where sales rose 10.7% globally to about $3 billion. The U.S., where sales grew 7%, accounted for roughly two-thirds of Frito-Lay's total sales. PepsiCo said a 16% rise in international sales was helped by a successful promotion in Latin America involving the popular Pokemon cartoon characters.
soft drink division, which makes such drinks as Pepsi, Mountain Dew, and Slice, saw 7% sales growth globally to $1.3 billion. The company's Tropicana division, which sells fruit juices in North America, posted sales of $553 million, up 3.7% from the prior year.
The company also said it expects to continue posting strong results through the end of the year.
"Looking ahead, we believe that changing lifestyles will continue to create enormous opportunities for PepsiCo. We believe our commitment to innovation and our unparalleled distribution capability can drive consistent double-digit earnings-per-share growth in the second half of 2000 and beyond," said Roger Enrico, chairman and chief executive at PepsiCo.
Shares of PepsiCo rose 1 11/16, or 4%, to 41 7/16 in early trading Thursday.