Pepsico released earlier this week the results for Q2. PotatoPro lists for you some exerpts related to the savory snack sector.
PepsiCo Chairman and CEO Indra Nooyi on the Q2 results: "We posted a solid second quarter, exceeding our core constant currency EPS growth target for the first half of the year. Our results reflect our ability to generate sustainable growth across a global snack and beverage portfolio despite continued macroeconomic challenges. In line with our plan, our bottler integration is on track and unlocking opportunities and efficiencies. We continue to make investments in near- and long-term opportunities across both our developed and emerging markets, and I'm very pleased that we've taken a disciplined approach to our activities in North America. All of these things give us confidence that we can generate strong, sustainable growth in the second half of 2010 and beyond."
Specific for the savory snack sector:
Frito-lay North America
Snack volume in North America decreased 3%
Frito-Lay North America Division (constant currency) Net revenue increased 1% and core division operating profit 7%.
Frito-Lay North America (FLNA) delivered volume and top-line results in line with expectations as it overlapped the "20% More Free"promotion launched in the second quarter of 2009. Operating profit benefited from improved costs. FLNA gained salty-snack dollar share in measured channels and unit growth was up low-single-digits as trends improved in both convenience-and-gas store channel and food service vending accounts.
Europe
Snacks volume growth in Europe of 2%
Pepsico did not specify to what extent the snack segment contributed to the (constant currency) 43% net revenue increase and 25% core division operating profit.
Snack volume increased, driven primarily by strong commercial programs across most of Western Europe. Key initiatives included progress on portfolio transformation with the launch of Matutano Seeds in Iberia and the expansion of locally relevant products in key growth markets like Russia.
Africa, Middle East and Asia (AMEA)
Snack volume growth: 16%
Pepsico did not specify to what extent the snack segment contributed to the (constant currency) 15% net revenue increase and 6% core division operating profit.
Snack volume grew at a mid-teens rate – driven by double-digit growth in India, the Middle East and China – as the business focused on value, innovation and expanding its footprint. India had its highest volume month ever in May as it launched a local version of the highly successful "Do Us a Flavour"campaign which debuted in the U.K. last year. Acquisitions contributed four percentage points to volume growth.
