PepsiCo Inc. expects an 11% increase in profits for the current fiscal year, or around $4.12 a share. The company earned more than 40 percent of its sales outside North America with all global units reporting increased sales and revenues.
The company reported earnings of up to $15.5 billion in sales revenues in the third quarter, a 40 percent increase from the previous quarter. European sales of the company saw an up tick of 47 percent that is rivaled only by the sales of the American beverages unit.
The company reported a net income of $1.92 billion, which translates to $1.19 a share, up from $1.09 profits of the year earlier when the company reported a profit of $1.72 billion.
The company has expanded its operations in Latin America and has introduced many local versions of the globally popular brands. The snack company purchased two bottlers in March that added a cost of $650 million; the company says the acquisition will generate $400 million in annual savings by 2012. Maximum sales came from the Americas beverage unit at $5.79 billion.
PepsiCo shares dropped to $65.90, or up to 3.2 percent, in trading before exchanges opened; it had a closing price of $68.11 yesterday on the New York Stock Exchange. Shares of the company have gained up to 12 percent this year, which is a major boost when compared to 4.9 percent of its rival Coca Cola Co.
The company also announced the creation of a global nutrition group to develop products with vegetables, grains, dairy and fruits.
