PepsiCo trumped analysts’ expectations (which stood at 11.98 billion dollars) in its first quarter of 2017, with a 2 % turnover increase to 12.04 billion dollars (11 billion euro).
Lower beverage sales
The company’s net profit grew 41 % to 1.32 billion dollars (1.21 billion euro). “We achieved solid revenue growth in the first quarter underpinned by global volume growth and positive net price realization, despite challenging food and beverage industry trading conditions in North America”, CEO Indra Nooyi said.
Despite a slight 1 % volume growth across the group, PepsiCo’s beverage sales slumped in the first quarter in pretty much every market. It only achieved growth in the Asian, Middle Eastern and North African regions. Snacks on the other hand grew in volume almost everywhere.
New strategy works
PepsiCo’s positive results prove CEO Nooyi’s new strategy works, cutting costs across the board and selling a wider range of healthy snacks and beverages.
It also shows that PepsiCo barely felt any negative feedback following its controversial ad campaign, which it cancelled after only a few days. It announced that it would try to stay clear of any political message in the future.
