Snack and beverage giant Pepsico has recorded a slight revenue growth of 2.4 % in the second quarter of this year. Net profit however went 14 % lower, due to rising taxes.
Spurred by Ikea
The American manufacturer of brands like Pepsi Cola, Lays and Quaker has to thank their snacks for the smooth-running sales: the sale of sugary soft drinks goes through a slump at the moment. Consumers increasingly opt for healthier alternatives nowadays, explaining why IKEA has already replaced soft drinks by fruit water in their stores. In response to this trend, Pepsico will launch new and healthier products onto the market.
Total revenue rose to 16,09 billion dollars (14 billion euros) thanks to strong performances in Europe and South Africa (+ 11 %), whereas the net profit fell to 1,82 billion dollars (1.5 billion euros). According to Indra Nooyi, CEO of the multinational since 2006, the company recorded mainly a growth at international level. On emerging markets, the company scores well with soft drinks Pepsi and 7UP and Lays chips. PepsiCo foresees these expectations for the entire year.