Photo: Flickr/Dalton Rowe
Pepsi Q3 earnings grew 7% to $1.31 per share versus analysts’ expectations of $1.30 per share.Costs jumped 21% during the quarter, but were more than offset by strong revenue growth.
Revenue jumped 13% to $17.6 billion, beating the expectation for $17.2 billion. Snack volumes grew 8% and beverage volumes increased 4%.
“We had strong revenue growth across our product portfolio and across our key geographic markets,” said CEO Indra Nooyi. “We were able to achieve pricing to partially offset commodity cost inflation and at the same time stimulate consumer demand for our products.
Pepsi’s Americas Beverage business saw 3% revenue growth, driven by higher prices and modest volume growth.
In Europe, snack volumes increased 4%, while beverage volumes declined.
Asia, Middle East and Africa saw snack and beverage volumes jump 16% and 6%, respectively.
For the full year, management expects high-single digit year-over-year earnings growth.
“The company’s guidance reflects uncertainty regarding macroeconomic and consumer trends for 2011 and anticipates high global commodity cost inflation and ongoing support of strategic initiatives in emerging markets and brand building activities.”