Pepsi profits boosted by improving North American beverage sales

PepsiCo turned in a stronger-than-expected set of quarterly results on Tuesday, with profits boosted by beverage sales at home following twelve months of declines and an increased investment into marketing in emerging markets.

The drinks giant saw sales rebound in North America on the back of its expanded portfolio, which now includes more non-carbonated beverages and sparkling water.

However, while North America beverage sales improved 2.3% in the three months leading to 8 September, that figure was still considerably short of analysts' expectations for an increase of 5%.

PepsiCo's snacks wing, Frito-Lay, revealed a 2.6% increase in sales across North America.

Net income hit $2.50bn for the quarter, or $1.75 per share, a 16.82% improvement on a year earlier, something the company credited to its increased advertising for its trademark colas - Pepsi, Diet Pepsi and Pepsi Zero - in an attempt to regain some market share taken away from it by its key rival Coca-Cola.

Excluding one-time items, PepsiCo pulled in $1.59 per share, topping analysts' estimates for $1.57.

Net revenues rose 1.5% to $16.49bn.

"We continued to see very strong operating performance from our international divisions, propelled by developing and emerging markets," said outgoing chief executive Indra Nooyi.

Nooyi will step down from her role on Wednesday, passing the keys to the cola kingdom over to president Ramon Laguarta.

The firm now expects full-year organic revenue to grow by at least 3%, up from its previous forecast of 2.3%.

As of 1610 BST, PepsiCo shares had dipped 1.07% to $109.52 a piece.