PepsiCo reported a 14 per cent increase in first-quarter net income, citing strength in its largest divisions, Frito-Lay and Pepsi-Cola in North America, reported the Associated Press.
Sales increased 8.5 per cent to $5.10 billion from $4.70 billion. Last year's figure had been restated downward by $630 million as an accounting adjustment for vendor's marketing expenses.
"All our businesses contributed to our quality growth, led by strong top and bottom line results at our largest divisions, Frito-Lay North America and Pepsi-Cola North America, along with a very strong quarter from Gatorade," Steven S. Reinemund, PepsiCo chairman and chief executive, said in a statement.
The company's global operations did well "despite the impact of adverse global macroeconomic conditions," he added.
Gatorade volume increased 20 per cent, while operating profit and revenue both rose 3 per cent. The Tropicana juice business remained soft, however, with volume down 2 per cent. The company said the integration of Quaker Oats, acquired last August for $13.8 billion, is solidly on track.
Pepsi's North American operations saw volume increase nearly 5 per cent as revenue grew 7 per cent and profit increased 15 per cent, driven by new products such as the energy drink, Mountain Dew Code Red and Pepsi Twist, and new package sizes of Aquafina bottled water.
Operating profit jumped 11 per cent for Frito-Lay North America, with revenue increasing 7 per cent and volume climbing 6 per cent. PepsiCo reported solid performance among its core products, including dips, Tostitos and Cheetos. It also benefited from strong sales of multipacks and the introduction of newly sized Quaker Chewy Bars.
"We're off to a great start, and our innovation pipeline and promotional calendars are strong for the balance of the year," Reinemund said.
In the current quarter, Pepsi said it is introducing several other products, including Lipton Brisk Lemonade, a SoBe beverage called Mr. Green and Starbucks Doubleshot espresso.