Pepsico profit rose to $1.7B from $1.56B in the year before period. An anemic North American market was offset by strong overseas growth where PepsiCo International saw revenue jump more than 20%.
Pepsico posted a 4.7% rise in first-quarter net income, as continuing volume growth in Asia helped it overcome soaring commodity costs and the weak economy. Faced with rising costs of vegetable oils, grain and other commodities -- Pepsico reported net income of $1.15 billion while net revenue rose 13% to $8.33 billion from $7.35 billion. Gross margins fell to 54% from 55.3%.
Pepsico reported continued strong operating performance in the fourth quarter of 2007. Net revenue increased 17% in the quarter and reported operating profit increased 9%; core division operating profit, excluding restructuring items, increased 11%.
Macroeconomic fears surrounding rising commodity costs and a weakening U.S. economy scare investors from Pepsi which makes two thirds of its revenues domestically.
Pepsi reports solid Q3 earnings achieving 10% net revenue, 10% division operating profit growth and 14% core EPS growth.
Moody's (NYSE:MCO) upgraded its rating of PepsiCo one notch, citing PEP's strong financial performance and debt protection measures as reasons for the upgrade.
Fitch Ratings, a major international credit rating agency, reaffirmed its high rating for both PepsiCo and two of its major bottlers, Pepsi Bottling Group (NYSE:PBG) and PepsiAmericas (NYSE:PAS).
Pepsi announced its expectations for revenue and volume growth in fiscal year 2007, as well as approximately $3.3 billion in share repurchases.
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