Pepsico Posts 12% Jump in Third-Quarter Profit

Pepsico said its third-quarter earnings rose 12% from a year ago on a 22% increase in revenue because of significant profit growth in its domestic soft-drink operations and an improved performance by its Frito-Lay snack business. Results also benefited from a lower tax rate, the company said.

Pepsico said its net income for the three months ended Sept. 6 came to $151.7 million, compared to $135.3 million in the same period a year ago. Revenue totaled $2.532 billion, compared to $2.07 billion.

Soft-drink operating earnings soared 30% on a 42% sales increase. Results were driven by particularly strong domestic gains and the inclusion of MEI Corp., a Pepsi-Cola bottler that Pepsico acquired in May, and Seven-Up International, purchased in July.