PURCHASE, N.Y., July 7 (UPI) -- PepsiCo raised its 2016 growth outlook Thursday after announcing higher-than-expected second quarter earnings, bolstered by an increase in snack and drink sales in North America.
Chief Executive Officer Indra Nooyi said cost-cutting measures and new products that include juices and flavored waters have helped fuel the company's gains. The company's Frito-Lay, Quaker Foods and beverage units in North America reported operating profit increases of 8 percent, 11 percent and 6 percent, respectively.
The company's Latin America division saw a 32 percent decline in earnings, and the Europe Sub-Saharan Africa division saw a 4 percent decline. The Asia, Middle East and North Africa division, meanwhile, saw a 3 percent increase.
"In what continues to be an incredibly volatile global macro environment, we are pleased with our results for the second quarter," Nooyi said. "While reported net revenue performance was negatively impacted by foreign exchange translation and the deconsolidation of our Venezuelan operations, we delivered balanced volume growth and positive price/mix driven by relentless execution of our commercial agenda and leading to solid organic revenue growth."
Second-quarter earnings came in at $2.01 billion, or $1.38 a share, up from $1.99 billion, or $1.33 a share, a year ago, MarketWatch reported.
