PepsiCo, Inc.(NYSE: PEP) in the first quarter of FY 17  has posted growth in the sales due to the higher prices, as the maker of Doritos, Gatorade and Quaker worked on transforming its lineup of products to keep up with changing tastes. There is a global volume growth and positive net price realization, despite the fact that there is challenging food and beverage industry trading conditions in North America and continued volatility in a number of developing and emerging markets. The first quarter 2017 and year-ago results were impacted by the restructuring charges in conjunction with the multi-year, the productivity plan that was publicly announced in 2014 and the commodity mark-to-market impact. The previous year results were impacted by a charge related to the transaction with Tingyi. Moreover, like other major food and beverage companies including Coca-Cola and Oreo cookie maker Mondelez, PepsiCo is working on adapting its stable of brands to better reflect the trend toward options that people feel are healthier. However, both PepsiCo and Coca-Cola have also been slashing costs to improve their financial results. PepsiCo in the first quarter of FY 17 has reported the adjusted earnings per share of 94 cents, beating the analysts’ estimates for the adjusted earnings per share of 91 cents. The company had reported the adjusted revenue growth of 1.6 percent to $12.05 billion from $11.86 billion in the first quarter of FY 17, beating the analysts’ estimates for revenue of $11.97 billion. Additionally, as per the previous guidance, PepsiCo expects the organic revenue growth of at least 3 percent. The foreign exchange translation as per the current market consensus rates, is now expected to negatively impact reported net revenue growth by approximately 2 percentage points and the 53rd week in 2016 is expected to negatively impact reported net revenue growth by 1 percentage point. PEP expects the core earnings per share of $5.09, approximately $10 billion is expected in cash flow from operating activities and approximately $7 billion in free cash flow (excluding certain items). The net capital spending is expected to be over $3 billion, dividend payments of approximately $4.5 billion and share repurchases of approximately $2 billion are expected in FY 17. PepsiCo stock has risen 11.94% in the last one year (source: Google Finance). On the other hand, the stock lost over 2.1% on April 26th, 2017 (as of 9:37AM EDT; Source: Google finance).

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