Pepsi Is Experiencing Losses due to High Costs

Pepsi Is Experiencing Losses due to High Costs


PepsiCo Inc (PEP.N) admits lower earnings today. This is due to high costs. The company also sees the same situation for the rest of the year unless situation will change. The drink and snack manufacturer said net earnings was $1.14 billion, or $0.71 per outstanding share during the first 3 months of this year, comparing to $1.43 billion, or $0.89 per share last operating year. This clearly shows a growth of $11.94 billion from $9.37 billion.

PepsiCo added that they still expected this year earnings to grow 7% to 8% from $4.13 per share in 2010.The company added its 2011 forecast anticipated “high global commodity cost inflation, difficult macroeconomic conditions in developed markets and ongoing strategic investments in emerging markets and in brand-building activities.” Regardless of the difficult economy PepsiCo is still expecting growth in the coming years.

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