PURCHASE, NY -- PepsiCo Inc.'s profit improved in the second quarter, aided by price increases for its Frito-Lay snacks, which offset weak beverage sales. PepsiCo earned $2.01 billion, or $1.28 a share, for the period ended June 15, up from $1.49 billion, or 94¢ a share, in the year-ago period. Revenue rose 2% to $16.81 billion.
The maker of Pepsi Cola, Gatorade, Doritos and Quaker Oats products said volume rose 2% in its Americas food unit for the quarter, with pricing up 5%. In Latin America, volume edged up 1%, and in North America volume climbed 3% for Frito-Lay and 1% for Quaker Foods. Snack volume increased 3% in Europe and 6% in the Asia, Middle East and Africa segment.
Meanwhile, volume in the Purchase, NY-based PepsiCo's Americas beverage unit fell 3.5% and was flat in Europe. Beverage volume rose 9% in Asia, the Middle East and Africa.
Like Coca-Cola, PepsiCo said its drinks business was hurt by a cold and rainy spring, but the company said its broad snack and beverage portfolio played a role in its strong performance.
PepsiCo stood by its outlook for the year, with core earnings per share expected to grow 7%.
The financial results come a week after activist investor Nelson Peltz said PepsiCo should acquire Oreo cookie maker Mondelez. PepsiCo said that it was confident in its "ability to deliver long-term shareholder value as an integrated food and beverage company."
In 2008, Peltz led a group of investors in pressuring Cadbury Schweppes to split its candy and beverage businesses, which later became Dr Pepper Snapple Group. He was also an active investor in Kraft Foods Group before its split from Mondelez.