Pepsi has had a rough time just seven months into 2016.
Between the passing of a soda tax in Philadelphia and a ban on selling sodas to Brazilian schools, it’s safe to say that Pepsi has been in an unfriendly environment for quite some time. And yet through all of that the soft drink giant has managed to make up any lost revenue through other products like oatmeal and chips. Which is exactly what happened to Pepsi.
Over the course of the second quarter, Pepsi reported taking in a revenue of $15.395 billion and $2.01 billion in total net income, which equals to roughly $1.38 per share. The revenue was only a hair short of what Wall Street had predicted, estimating a $15.4 billion figure and hinting there would be a 3% decline since last year. However, the findings show that Pepsi did manage to exceed their expectations and improve on their total profit from a year ago.
Pepsi believes that the sudden drop in its revenue over the quarter can be blamed on the bad foreign currency exchange, but also to a serious drop in production in Venezuela, to the point where the company had to deconsolidate its operations in the country. Pepsi concluded that there was a negative 2.5% drop on its revenue because of this, yet Frito-Lay and Pepsi’s Quaker segment all saw profit and revenue increases during the second quarter. Beverages as a whole went up by 1%.