PepsiCo Inc., 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 fell 0.6 percent to $79.17 at 10:37 a.m. in New York. The shares gained 17 percent this year through yesterday, while the Standard & Poor’s 500 Index advanced 15 percent.
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.