Beverage curve

29 September 2016 By Kevin Allison

The $156 bln beverage and snacks titan generated better-than-expected sales and profit thanks to higher ad spending and lower-calorie drinks. Creeping health concerns and soda taxes threaten to shake up industry finances. In the meantime, Pepsi is trying to stay ahead of trouble.

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PepsiCo on Sept. 29 reported fiscal third-quarter results that exceeded Wall Street estimates as higher advertising spending lifted sales from a year ago. The maker of Pepsi cola and Fritos corn chips also raised its earnings per share forecast for the full year.

Quarterly revenue declined by about 2 percent to $16 billion, mainly due to fluctuations in foreign-exchange rates. Comparable sales, which exclude currency swings and other special items, rose 4.2 percent in the period.

Net income for the period was $2 billion, or $1.37 a share, up from 36 cents a year earlier, when Pepsi took a big writedown on its Venezuelan business.

Earnings of $1.40 a share, excluding special items, beat the average analyst estimate of $1.32.

Pepsi shares increased 1.3 percent in early-morning New York trading.

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