PURCHASE, NY. — Revenue in snacks and breakfast items increased for PepsiCo, Inc. in the third quarter ended Sept. 9.
In Frito-Lay North America, net revenue of $5.95 billion was up 7% up from $5.56 billion in the previous year’s third quarter. Pricing had a 7% positive impact, but organic volume slipped 0.5%. Operating profit increased 5% to $1.67 billion from $1.59 billion due to planned business investments and a double-digit increase in advertising and marketing spend.
The FLNA business gained market share in the macro and savory snack categories. Revenue grew for Doritos, Cheetos and Ruffles. Emerging brands such as PopCorners, SunChips and Miss Vickie’s each delivered net revenue growth in double-digit percentages.
Executives in prepared comments issued Oct. 10 pointed to extensions of flavor profiles across large brands: Doritos spicy pineapple jalapeño, Funyuns spicy queso onion-flavored rings, Ruffles Flamin’ Hot queso and Smartfood Doritos nacho cheese-flavored popcorn.
In Quaker Foods North America, net revenue in the quarter increased 5% to $747 million from $713 million. Organic revenue increased 5%. Pricing was up 4%, and organic volume was up 1%. Operating profit increased 11% to $135 million from $122 million. The business gained share in the pancake mix, pancake syrup, grits and “lite” snacks categories. Double-digit net revenue growth came in “lite” snacks, grains, and pancake syrups and mixed categories.
Purchase-based PepsiCo companywide had net income of $3.09 billion, or $2.24 per share on the common stock, which was up 14% from $2.70 billion, or $1.94 per share, in the previous year’s third quarter. Net revenue increased 7% to $23.45 billion from $21.97 billion. Organic revenue increased 9%