PepsiCo net profit up 5% to $2.11 bn on better soda prices, stake sale

Total revenue rose 2.1 per cent to $15.71 billion

PepsiCo Inc reported a better-than-expected quarterly profit on Tuesday, helped by higher pricing of its sodas and snack foods sold in North America and the sale of its minority stake in British bottler Britvic Plc.

Net income attributable to PepsiCo rose 4.97 per cent to $2.11 billion, or $1.46 per share, from $2.01 billion, or $1.38 per share, a year earlier.

Excluding items, the company earned $1.50 per share.

Revenue rose 2.1 per cent to $15.71 billion.

Revenue in PepsiCo's North America beverage business, the company's biggest, rose 2 per cent to $5.24 billion in the second quarter ended June 17. While volume sales were flat, net pricing was up 1 per cent, the company said.

Revenue from its Frito-Lay North America business rose 3 per cent, helped by a 1 per cent rise in volume and 3 per cent rise in net pricing.

PepsiCo and rival Coca-Cola Co have focused on selling smaller, higher-margin packs in developed markets while pulling back on promoting large discount packs as they look to cushion the impact of falling demand for fizzy drinks.

PepsiCo said in May it would sell its 4.5 per cent stake in British bottler Britvic for an undisclosed amount.

Analysts on average had expected earnings of $1.40 per share on revenue of $15.60 billion, according to Thomson Reuters I/B/E/S.