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American food giant PepsiCo had another disappointing quarter as its turnover dropped 3 %, while profit even plummeted a quarter, partially because of the expensive dollar and weaker Latin American and European results.
Net profit dropped a lot
It is PepsiCo’s sixth straight quarter with lower turnover, now down 2.9 % to 11.86 billion dollars (10.5 billion euro). Turnover in Europe and Sub-Saharan Africa dropped 9.1 % to 1.36 billion dollars (1.2 billion euro), but that was nothing compared to the Latin American drop, where turnover fell 26.3 % to 1.04 billion dollars (920 million euro).
Exchange rates have also negatively affected turnover, pushing it down 4.5 %. PepsiCo’s organic turnover did grow 3.5 % in the first quarter and the company still expects it to an organic growth of 4 % for the full fiscal year.
The company’s net profit dropped 24 %, from 1.22 billion dollars (1.1 billion euro) to 931 million dollars (824 million euro). The biggest culprit is a 373 million dollar (330 million euro) devaluation of PepsiCo’s stake in Tingy-Asahi Beverages Holding.
PepsiCo is mostly known for its soda (Pepsi), but also manufactures Lay’s, Looza, Doritos, Tropicana and Smiths.
