Final quarter profits fallThis article was originally published in Foodnews
PEPSICO has reported profits for the fourth quarter of 2007 that, excluding special items, met analysts' expectations. The company also forecast full-year earnings in line with its long-term goals. Net profit for its fourth quarter was US$1.26 billion, down from US$1.83 billion, on a sales increase of 5% to US$12.35 billion. Higher sales of non-carbonated drinks like Gatorade and Lipton tea offset declines for carbonated soft drinks, like Pepsi-Cola, and juices like Tropicana, as price increases hurt sales. Snack volumes rose 8% and drinks volume rose 9% in the international business, which has grown in importance as soft drink sales in the US have begun to decline. Beverage sales volumes also declined in Mexico, Thailand and Spain.