Pepsico net profits in line; rejig in operations possible

Business

oi-Sunil

By Sunil Fernandes

Updated: Friday, April 19, 2013, 10:19 [IST]

Pepsico has reported profits for the first quarter of the year that largely met expectations at $1.08 billion. Though profits dropped by 5 per cent, these were largely in line with expectations. Profits at Pepsico fell on restructuring costs and as a result of hit from the depreciation of the Venezuelan currency.

Pepsico is the maker of the popular Pepsi sodas, Tropicana juices, Frito-Lay snacks and Quaker oatmeal. Speculations are now rife that the company would break up the snacks and the beverages business into two. The beverage business has not been performing as well as the snacks business.

Analysts are reading into comments made by Indra Nooyi of a possible split in the businesses of the company by breaking it up. "We're taking out costs to drive margin and improve returns under our current structure while we continue our work to explore sensible opportunities to unlock incremental value through meaningful structural alternatives."

Pepsico entered India in 1989. One of the largest food and beverage businesses in India, PepsiCo India's diverse portfolio includes iconic brands like Pepsi, Lay's, Kurkure, Tropicana 100%, Gatorade and Quaker.

The company sponsors the prestigious IPL cricket league in India.

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