The fourth-quarter profit’s for PepsiCo Inc.'s have been released and have nearly doubled on strength within its snacks business and international beverage operations. Pepsi, pleased with their overseas success has said the company will continue to develop internationally as a means of compensating for weak domestic drinks market.
PepsiCo added that they predict additional savings from its buyout of two of its bottlers. The company believes the extra money generated from the deal, which cost approximately $7.8 billion, will contribute to new products being marketed at a faster rate. The deal is set for completion at the end of the month.
Additionally, Pepsi has plans to unleash new snack products and speed growth in developing markets, part of its strategy to increase revenues and profits. The stigma associated with sodas in the U.S. has challenged Pepsi and led them to look internationally and be more innovative with their products.
In China, Pepsi is constructing 14 new plants to accommodate rising demand. The company intends to place much of its energy in the Chinese market through 2015 according to Pepsi’s CEO.
Pepsi earned $1.43 billion, or 90 cents per share with sales reaching $13.3 billion, a 4.5 percent increase from $12.74 billion. This edged out Wall Street's $13.26 billion forecast.
In the hours that followed, shares of PepsiCo, based in Purchase, N.Y., rose 81 cents, or 1.3 percent, to $61.19.
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