PepsiCo's first quarter net profit slipped 1.1 per cent to US$1.14 billion (S$1.72 billion), above market forecasts. -- PHOTO: REUTERS
NEW YORK - PEPSICO, the maker of Pepsi soft drinks and Tropicana juices, said on Monday its first quarter net profit slipped 1.1 per cent to US$1.14 billion (S$1.72 billion), above market forecasts.
Pepsico said its first quarter to March 21 operating profit, excluding exceptional items, came to 71 cents a share, above analyst forecasts for 67 cents. Sales fell one per cent to $8.26 billion in the three-month period.
PepsiCo also said it planned to pay $6 billion to obtain full control of two of its main bottling operations, Pepsi Bottling Group and PepsiAmericas.
The company, which also makes snack foods, said it would pay $29.50 per share and $23.27 per share, respectively, to buy out minorities in the two bottlers.
The acquisition, paid half in cash and half in PepsiCo shares, would ensure the company directly controlled 80 per cent of its North American sales and add more than $200 million to pretax earnings annually via cost reductions, economies of scale and greater efficiency. -- AFP
