PepsiCo Chairman and CEO Indra Nooyi said, “The majority of our businesses performed very well, particularly our international divisions propelled by continued growth in developing and emerging markets, and our North America Beverages sector posted sequential net revenue and operating profit performance improvement.”
PepsiCo, which acquired Bare Foods earlier this year, saw good growth in its Frito-Lay business. The company however faces stiff competition, particularly from top rival Coca-Cola (KO). The food and beverages business in the US is seeing pressure from high costs and shifting consumer trends and PepsiCo’s beverages segment is facing heat in particular, with increasing competition from smaller rivals. PepsiCo has plans to invest more in its proprietary cola business to drive sales.
For full-year 2018, PepsiCo expects organic revenue growth of at least 2.3%. Core earnings are expected to increase 9% from last year to $5.70. The company expects to return around $7 billion to shareholders through share repurchases of around $2 billion and dividends of around $5 billion.
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Related: PepsiCo Q2 2018 Earnings Transcript
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