PepsiCo Profit Rises 21% on Snack Sales
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PepsiCo Inc. said fourth-quarter profit rose 21% because of lower costs and increased sales at the company’s Frito-Lay snacks unit.
Net income climbed to $805 million, or 46 cents a share, from $667 million, or 37 cents, a year earlier. Revenue rose 7% to $7.46 billion, led by a 4% increase in snack-food sales, PepsiCo said.
John Compton was named president of a new Frito-Lay salty-snack division that includes the Doritos and Cheetos brands.
Investors have expressed concern that growth may be slowing at Frito-Lay North America, which generates about two-thirds of the company’s profit and is PepsiCo’s biggest unit, while the company’s share of the U.S. soft-drink market declines.
Shares of PepsiCo, which makes Pepsi and Mountain Dew, fell 86 cents to $40.22 on the NYSE.
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