PepsiCo profits rise 15% in fourth quarter of 2001 - Brief Article - Statistical Data Included

Eurofood, Feb 13, 2001

US cola and snack food giant PepsiCo has seen profits for its fourth quarter increase by 15%. PepsiCo, whose Frito-Lay snack food unit has been performing particularly well in recent times, said that it recorded earnings growth across all units.

Q4 revenue reached US$6.12bn ([euro]6.6bn), up from US$5.68bn the previous year. Frito-Lay North America, which now controls more than half the crisps market in the US, recorded net sales up 6.5% to US$2.48bn. The US concern said that it expects this growth to continue, with revenues rising by 5 % to 7% during 2001.

SNACK SALES UP 10%

On a global scale, Frito-Lay International saw net sales jump 10% to US$1.35bn, and that it expected this unit to reap "midteen profit" growth in 2001. For its 2001 outlook, chairman and chief executive of PepsiCo remains confident that its forecast of 12% to 13% growth can be achieved.

GATORADE TO JOIN THE STABLE

Adding to its strong snack division, PepsiCo's drinks side of the business is about to acquire the strongest US sports drink Gatorade. PepsiCo fought off competition from arch rivals Coca-Cola, and French firm Danone to land Gatorade. However, the acquisition of Quaker will also bring a new challenge to PepsiCo. More interestingly for the US cola giant will be how its snack division Frito-Lay copes with the likes of Quaker Oats cereals along side its current snack range.