Acquisition Boosts PepsiCo Post Q2 Profits

PepsiCo’s second quarter 2010 revenue has climbed 40% to $14.8bn, benefiting from the $7.8bn buyout of PepsiAmericas and Pepsi Bottling Group.

The company closed the acquisition of the bottling company in late February to give itself more control over the distribution of its drinks in North America, where sales have been sluggish.

PepsiCo said its beverage volume in North America rose 13% in the period while its volume in Asia, Middle East and Africa increased 16% for snacks and 8% for beverages.

It earned $1.60bn during the quarter compared to a profit of $1.66bn a year ago.

The company expects cost savings and benefits of $125m-$150m from the acquisition this year and $400m annually by 2012.

PepsiCo said it bought back 39 million shares of its stock for $2.6bn in the second quarter and plans to spend $4.4bn on stock repurchases for the year.