PepsiCo Inc. (PEP), the soft-drink maker that makes half of its sales outside of the U.S., said currency fluctuations will cut revenue growth by about 2 percentage points this year, more than previously forecast.
The company projected a 1 percentage-point effect in July. Foreign-exchange rates will have an “unfavorable impact” on full-year core earnings per share, Purchase, New York-based PepsiCo, which is also the world’s largest snack maker, said in a statement today.
Chief Executive Officer Indra Nooyi has been trying to sell snacks to countries with a growing middle class, such as India, Brazil and Russia. The company has developed foods that appeal to local tastes and added more spicy offerings to its line up.
PepsiCo reiterated a forecast for earnings per share growth of 7 percent, in constant currencies. Excluding certain items, that would equal profit of about $4.39 a share this year. Analysts estimate $4.34, the average of 16 projections compiled by Bloomberg.
Revenue excluding structural changes, foreign exchange translation and acquisitions will increase in the “mid-single digits” this year, the company said.
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