The net profit of the American PepsiCo Inc (NYSE: PEP), the second largest soft drinks manufacturer in the world, has increased in the second quarter of 2016 by 1.3% and amounted to $ 2.005 billion, or $ 1.38 per share, compared with $ 1.980 billion, or $ 1.33 per share, for the same period of the previous year.
PepsiCo profit, excluding one-off items, amounted to $ 1.35 per share, according to a company press release. Analysts polled by FactSet, on average, had forecast the index at the level of $ 1.29 per share.
The company's revenue fell 3%, to $ 15.4 billion, which is in line with the forecasts of experts.
The sales of the North American division Frito-Lay, which produces food, has increased in the last quarter by 3%, to $ 3.56 billion. The revenue of the American division, which produces beverages, rose 1%, to $ 5.15 billion.
The revenue from European operations fell 5%, to $ 2.66 billion. In the region which unites Asia, Middle East and Africa, revenues decreased by 1.5%, to $ 1.75 billion. In Latin America the figure fell 23%, to $ 1.72 billion.
PepsiCo has improved the forecast of adjusted earnings per share for 2016 to $ 4.71 from $ 4.66. The experts expect this figure at $ 4.72. The company expects organic sales growth of 4% this year.
The company also expects to buy back its own shares in the amount of $ 3 billion by the end of the year.
As for the US stock market, it closed Friday trading higher due to the strengthening of the raw materials, industry and finance sectors.
At the close on the New York Stock Exchange, Dow Jones rose 1.40%, reaching a 52-week high, S&P 500 rose 1.53%, and NASDAQ Composite Index went up by 1.64%.
The leaders of growth among Dow Jones index components were the shares of Caterpillar Inc (NYSE: CAT), up 2.32 p. (3.09%), to 77.37. The quotes of EI du Pont de Nemours and Company (NYSE: DD) rose 1.77 p. (2.86%), to 63.69. American Express Company shares (NYSE: AXP) rose 1.68 h (2.81%), to 61.49.
The worst performers were Johnson & Johnson (NYSE: JNJ), the price of which fell 0.28%, to 122.85, McDonald's Corporation (NYSE: MCD), which fell 0.32% to 121.31, and UnitedHealth Group Incorporated (NYSE: UNH), which fell 0.33% to 141.27.