The net profit of US PepsiCo Inc (NYSE: PEP), the second-largest producer of soft drinks, in the third quarter of 2015 fiscal year, which ended on September 5, fell by 3.8 times, which is by $ 533 million, or $ 0.36 per share, compared with $ 2.01 billion, or $ 1.32 per share, in the same period a year earlier.
According to PepsiCo press release, the profit decreased mainly due to write-offs of divisions in Venezuela.
PepsiCo has written off $ 1.4 billion in connection with the devaluation of the Venezuelan assets, and starting with the current quarter, it won’t include the results of this country divisions in its reporting.
The company's profit, excluding these write offs, as well as other casual factors, in the past quarter was $ 1.35 per share. Analysts surveyed by Bloomberg, on average, had forecasted the figure at $ 1.26 per share.
Quarterly revenue of PepsiCo fell 5.2%, to $ 16.33 billion. The median forecast of experts for this indicator was $ 16.1 billion.
The decrease in revenue is largely due to the strengthening of the US dollar against other world currencies, reducing PepsiCo earnings from overseas operations.
Organic revenue growth in the last quarter was 7.4%, the company reported.
PepsiCo has improved the earnings outlook for the current year following the increase of prices for the products in the North American unit for the production of snacks and drinks. Now, the company expects to increase annual profits by 9% instead of 8% from the level of fiscal year 2014 ($ 4.63 per share).
Exchange differences are expected to have an adverse effect on the company's profit in the current year.
Quarterly profit of PepsiCo Inc (NYSE: PEP) has exceeded expectations due to lower prices of raw material and demand for snacks and drinks produced by the company in North America.