You are here
Strong snack sales from Frito-Lay Inc. helped propel parent company PepsiCo Inc. to a 12 percent gain in first-quarter profit, according to a report in the Dallas Morning News.
Both the snack maker's revenue and operating profit rose 6 percent in the quarter that ended March 25. Sales of some healthier-focused snacks, including those with the "Smart Spot" label, gained 20 percent.
"We feel very good about the performance of Frito-Lay North America," Indra K. Nooyi, PepsiCo's president and CFO, told analysts. She said the company hopes to continue the trend with major marketing plans for some brands.
During the summer, Frito-Lay expects to introduce new products including a multigrain Tostitos snack. It also hopes to boost sales of Doritos, which have been sagging, with extensive National Football League tie-ins this fall. It also plans to serve up a variety of promotional ties-ins to coincide with this summer's premiere of "Superman Returns," the newspaper reported.
PepsiCo, based in Purchase, N.Y., posted profit of $1 billion, up 12 percent from last year's $912 million. Revenue was $7 billion, up 9.4 percent from last year's $6.6 billion.
Citigroup Investment Research analyst Bonnie Herzog told investors in a note that she was impressed by PepsiCo's performance. She also noted that the company has been experimenting in the United States with using sunflower oil to reduce fat content in some snacks.
PepsiCo Chairman and Chief Executive Steve Reinemund confirmed that the company is testing the oil in the Northeast and said that he was optimistic about its possible use more broadly.