PepsiCo Inc. (NYSE: PEP) on Monday posted first-quarter profit that topped Wall Street estimates, while revenue fell after strong dollar hurt overseas business.
The food and beverage company said that net income dropped 24 percent to $931 million, or 64 cents a share, in the quarter ended March 19. Excluding some items and the Purchase, earnings were 89 cents a share. Analysts had projected a earning of 81 cents a share.
Revenue fell 2.9 percent to $11.9 billion, down 3 percent from $12.22 billion a year earlier. Analysts had project revenues of $12 billion.
The company said the sales were hurt by currency headwind. Net revenue from oversea business declined. Europe and Sub-Saharan Africa sales fell 9.2 percent to $1.36 billion. Latin America sales dropped 26 percent to $1.04 billion.
"Most of the developed world outside the U.S. is grappling with slow growth," said Nooyi, citing inflation and unemployment in emerging markets.
But sales rose for its North America Frito-Lay division and Beverages unit, which compensate the lost on strong dollar. Sales in Frito-Lay division, which makes Doritos, Cheetos and Lay’s chips, rose 3 percent to $3,42 billion.
“The American consumer is still doing well and still benefiting from lower gas prices,” Johnston said in an interview. “I think the U.S. business can continue to perform quite strongly.”
The company CEO Nooyi also said that the company was considering some acquisitions, but it was still finding the right targets.