PepsiCo's second quarter results have exceeded analyst expectations, mainly thanks to increased snack sales in the United States.
Increased profit forecast
PepsiCo's snack division experienced a 3 % turnover growth in the second quarter while the company's total turnover dropped 5.7 % to 15.9 billion dollars (14.4 billion euro). Profit was stable at 1.98 billion dollars (1.8 billion euro).
Results were impacted by negative exchange rate fluctuations, because if those had remained level, profit would have increased. Nevertheless, PepsiCo is satisfied with the results and has subsequently increased its 2015 profit forecast. It had expected a 7 % profit increase compared to 2014, but it has now forecast an 8 % profit forecast.
On the other hand, PepsiCo will keep cutting costs, with a goal of saving 1 billion dollars (900 million euro) each year up until 2019. For 2015, it is on course to achieve that goal.