Food and beverage giant
said Wednesday that profits rose by 10% amid stronger sales in its snacks and juice divisions, helping the company top consensus estimates by a penny.
The Purchase, N.Y-based company, which produces everything from corn chips to soft drinks, said its North American unit saw lower volume and its operating income fall 8% to $158 million. Pepsico blamed the lower numbers in North America on higher prices in retail outlets.
Overall, Pepsi posted first-quarter earnings per share of 29 cents, or $422 million, vs. 25 cents, or $382 million, in the year-ago quarter. Analysts surveyed by
First Call/Thompson Financial
projected earnings of 28 cents per share.
Pepsi shares declined in early trading, falling 1/2, or 1%, to 35 7/16.
Boosted by sales gains at Frito-Lay Worldwide, Tropicana and Pepsi-Cola International, first-quarter revenue rose 8% to $4.2 billion from $3.9 billion in the year-earlier quarter.
Earlier this month, Pepsico said it expected to meet consensus expectations, and warned that higher prices would hurt results in its North American beverage unit.
Pepsico's earnings come a day after rival
beat analysts' estimates by 11 cents, excluding one-time charges.