Pepsico Q2 net revenue up 40% at $14.8 bn

US-based Pepsico today posted a 40 per cent increase in net revenue to $14.8 billion for the three months ended June 12, 2010, over the same period last year on the back of strong volume growth in Asian and African markets and the recent buyout of two bottlers.

The company, which had posted a net revenue of $10.6 billion in the same period last year, attributed the growth to gains across its snacks and beverages portfolio in key international markets, besides the buyout of The Pepsi Bottling Group (PBG) and PepsiAmericas (PAS).

During the quarter, the company said it witnessed double digits growth in India and China in terms of overall volumes in both the beverages and snacks categories.

PepsiCo said total operating profit grew by 14 per cent during the period to $2.5 billion from $2.2 billion in the same quarter of the previous year.

"Our results reflect our ability to generate sustainable growth across a global snack and beverage portfolio despite continued macroeconomic challenges... Our bottler integration is on track and unlocking opportunities and efficiencies," PepsiCo Chairman and CEO Indra Nooyi said in a statement.

The company, which sells brands like Pepsi, Mountain Dew and Tropicana in the drinks segment, said its strong top-line performance has been driven by volume gains in Asia, the Middle East and Africa (AMEA), particularly in India and China.

"Beverage volume grew at a high-single-digit rate, led by double-digit gains in India, Pakistan and Egypt," Pepsico said.

It said snacks volume growth was largely driven by double-digit growth in India, the Middle East and China.

"Snack volume grew at a mid-teens rate –- driven by double-digit growth in India, the Middle East and China –- as the business focused on value, innovation and expanding its footprint," it added.

Pepsico said India witnessed the highest volume month ever in May, riding on the back of a local version of the 'Do Us a Flavour' campaign launched in the UK last year.