BVIC Britvic Plc

By Imani Moise 

PepsiCo Inc. said its second-quarter sales and earnings rose as the beverage and snack maker continued to offset weak demand in North America with higher prices.

The company also lifted its adjusted earnings-per-share outlook for the year to $5.13 from $5.09 after selling its minority stake in Britvic PLC, the company that produces and sells Pepsi in the U.K.

The Purchase, N.Y., maker of Frito Lay snacks, Gatorade and its namesake cola has been hurt has consumers spend more time at the perimeter of the store browsing through produce and fresh meats and less time in the center aisles where the company's signature snacks and drinks are found. PepsiCo has been emphasizing its "guilt free" products like diet sodas and low-sodium snacks that fit current consumer trends but has still struggled to lure more shoppers to the center of the store.

PepsiCo's beverage volumes declined 2% in the latest quarter while Frito Lay and Quaker Foods volumes were flat. However, companywide, organic revenue rose 3.1 % from the year-ago quarter.

In all for the quarter ended in June, PepsiCo posted earnings of $2.11 billion, compared with $2.01 billion a year ago. Adjusted earnings-per-share of $1.50 handily topped the consensus estimate of $1.40. Revenue also beat views, jumping 2% to $15.71 billion compared with estimates of $15.6 billion.

Shares, which have climbed more than 9% so far this year, edged up 0.5% to $114.79 during premarket trading Tuesday.

Write to Imani Moise at imani.moise@wsj.com

(END) Dow Jones Newswires

July 11, 2017 07:09 ET (11:09 GMT)

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