The fourth quarter results shows a profit climb of 31 percent for PepsiCo in its North American markets, thanks to the hike in pricing. The profit boost accomplished through the sales of snacks and drinks in the North American market met the expectations of the investors, the company said. The producer of Frito-Lay chips and Mountain Dew drink has revamped its product lineup to woo more buyers. The new lineup of products consists of Mountain Dew Dewshine and bigger packets of Lays potato chips.
The new Mountain Dew Dewshine is packaged in a glass bottle and has a higher price tag than regular soda cans. The company has also minimised its purchasing efforts in a bid to reduce its financial burdens, which had obviously paid off. For the last quarter of 2015 which ended on December 26th, the beverage giant recorded a profit hike of 31 percent to $1.72 billion.
PepsiCo said that its profit rose 31 percent to $1.72 billion by the quarter ended in Dec. 26. Earnings, adjusted for one-time gains and costs, came to $1.06 per share, which was confirming Wall Street expectations.
Total revenue fell 7 percent to $18.59 billion, due to the variations from foreign exchange rates for the company’s overseas sales. But that is higher than the $18.52 billion analysts expected, according to Zacks Investment research. PepsiCo expects full-year earnings to be $4.66 per share, which is lower than the $4.79 per share Wall Street expects, according to FactSet.
PepsiCo Inc. shares have decreased slightly more than 2 percent since the beginning of the year, while the Standard & Poor’s 500 index has declined slightly more than 9 percent. The stock has dropped slightly in the last 12 months.