PURCHASE, N.Y. — PepsiCo Inc. says its profit rose 18 percent in the second quarter as customers in emerging markets bought more snacks and drinks.
But the company reaffirmed that it will raise prices to deal with higher costs for ingredients even though customers in developed markets like the U.S. continue to be stressed.
The maker of Pepsi soda and Frito-Lay snacks says its net income rose to $1.9 billion, up from $1.6 billion a year ago. Per-share earnings excluding one-time items were $1.21, in line with analysts’ expectations.
Revenue rose 14 percent to $16.8 billion, beating analysts’ estimates of $16.4 billion.
Shares fell 1.8 percent to $67.26 in premarket trading.