Pepsi Bottling Reports Positive Q2

The Pepsi Bottling Group has reported a 9.5% rise in net income to $162 million, or $0.70 per share, during the second fiscal quarter, over the prior year quarter’s net income of $148 million, or $0.61 per share.

The US-based bottler said that revenue was up 7% during the quarter at $3.4 billion, driven by solid growth across each of the company’s geographic segments. Total worldwide physical case volume was up 1%. Volume in the US was flat, compared to 5% growth in the prior year. European volume grew 6%, led by a more than 20% improvement in Russia. In Mexico, volume declined 2%.

Commenting on the group’s performance, Eric Foss, president and CEO, said: “PBG turned in an exceptional quarter. This performance demonstrates again our ability to balance opportunities and challenges to consistently deliver great results. Highlights of the quarter included 10% growth in operating income in the US and Canada as well as outstanding top-line growth in Russia.”

“By executing our key strategic initiatives, we were able to deliver double-digit growth in earnings per share for the quarter. As a result, we are increasing our full-year 2007 EPS guidance range to $2.02 to $2.07. Our focus continues to be on creating long-term value and growth for our shareholders,” Mr Foss added.

PBG, which is the world’s largest manufacturer, seller and distributor of Pepsi-Cola beverages, also raised its full-year EPS guidance from a range to $2.02 to $2.07 from $1.90 to $1.98.