New York-based, worldâ€™s largest snack food and beverage maker, PepsiCo (NYSE: PEP) reported results for the third quarter of 2012 ended Sep 8, 2012.
For the third quarter, PEPâ€™s revenues decreased by 5% to $16,652 million. Operating Income fell 4% to $2,800 million. Net income dropped 5% to $1,902 million. Net cash from operations for the nine months ended Sep 2012 was $5,118 million.
PepsiCo reported volume growth of 6% in Snacks and 3% in beverages worldwide. PEPâ€™s unit case volume increased in all geographic regions except Americas Beverages. There was a substantial growth in the companyâ€™s North America divisions including 6% in PepsiCo Americas Foods division, 1% in Frito-Lay division, 15% in Latin Americas Food division and 2% in Quaker Foods.
In spite of 1% volume growth and 4% benefit from effective net pricing, total revenues for the quarter fell 5%. The decline was mainly due to a 5% decline in foreign exchange translation and 5% decline from Structural changes, primarily refranchising in China and Mexico. The companyâ€™s organic net revenue grew 5% in the third quarter.
Operating profit for the quarter fell 4% and core operating profit declined by 8%. The decline reflects the impact of increased commodity costs, increased advertising and marketing expense, higher corporate unallocated expenses reflecting increased pension expense and a negative 3 percentage point impact of foreign exchange translation.
Net income decreased 5% in the third quarter.
As on Sep 8, 2012, PepsiCo had total assets of $74,017 million including $5,309 million worth of cash and its equivalents. Total liabilities were $52,433 million, among which 31% were current and the remaining was long term. Total Stockholdersâ€™ equity was $21,584 million.
PEPâ€™s shares have been quite volatile today. The stock has been trading so far today in the range of $70.18 and $70.93. At the last check, PEP shares were trading 0.06% higher at $70.34 with trading volume of 3.7 million.