PepsiCo reported second quarter revenue of $7.1 billion, an 8% jump over the same period last year.
Income was $1 billion, up 12% from $944 million in the second quarter of 2003. The quarter ended June 12.
The company said volume was strong during the quarter, with products sold worldwide up 8%, driven in part by strong international results. Snacks grew 6% and beverages 10%.
Frito-Lay North America reported revenue of $2.2 billion compared to $2.1 billion one year ago. Growth in the salty snack business came primarily from the continuing introduction of Lay’s STAX Potato Crisps; the introduction of Doritos Rollitos and the continued growth of other snacks including Tostitos Tortilla Chips and Dips, Lay’s Classic Potato chips and Munchies Snack Mix, which were partially offset by declines in Doritos, Fritos and Rold Gold.
Tostitos will get new packaging and strong promotional tie-ins with both college football and the NFL, the company said.
A weakness in Quaker snacks was driven by two 2003 new product introductions, Crisp’ums and Fruit & Oatmeal Toastables, which have not met expectations. The Quaker bar businesses and Quakes lite snacks also saw declines in the quarter. New low-carb products include Quaker Q-Smart low carbohydrate bars, Fruit and Oatmeal low-sugar bars and Quaker Soy Crisps
PepsiCo Beverages North America showed strong volume growth of 7%, with the non-carb portfolio delivering 14% growth. Non-carbonated beverages case sales climbed 14% and carbonated sales grew almost 4%.
Revenue for the six months ended June 12, was $13.2 billion, up from $12.07 billion one year ago.
Promotions over the balance of the year include: a limited time only creation, grape-infused Mountain Dew Pitch Black, to be available during Halloween; Pepsi Play for a Billion is back this year along with Pepsi Smash, the branded music series on The WB network; a new Aquafina TV campaign; holiday promotions and a reformulated Tropicana Pure Premium Light & Healthy, with 50% less sugar and calories launched this month.
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