Pepsi Bottling Group Inc
The largest bottler of PepsiCo Inc
Shares rose 1.3 percent to $37.80 in premarket trade.
We're on track to deliver a very good year despite the challenging macroeconomic environment, said Pepsi Bottling Chief Executive Eric Foss.
The company, which bottles and sells Pepsi drinks in North America, Greece, Russia, Spain and Turkey, is being acquired by PepsiCo as the second-largest soft drink maker after Coca-Cola Co
The $7.8 billion acquisition includes Pepsi's second-largest bottler, PepsiAmericas Inc
PepsiCo said on Monday that Foss would run the new integrated North American bottling business as it competes with the Coke bottling system that remains decentralized.
PROFIT BEATS, REVENUE FALLS SHORT
Pepsi Bottling said net income was $254 million, or $1.14 per share, in the third quarter, up from $231 million, or $1.06 per share, a year earlier.
Excluding items, earnings were $1.06 per share. Analysts on average were expecting $1.05 per share, excluding items, according to Thomson Reuters I/B/E/S.
Net revenue dropped nearly 5 percent to $3.63 billion, falling short of analysts' average expectation for $3.73 billion.
Total sales by volume fell 2 percent, as a 1 percent gain in Mexico was offset by declines of 5 percent in Europe and 1 percent in the United States and Canada.
Excluding the impact of currency fluctuations, revenue per case rose 4 percent, helped by increases of 3 percent in the United States and Canada, 7 percent in Europe and 6 percent in Mexico.
The company raised its operating free cash flow forecast to $550 million, $100 million higher than its earlier expectation. (Editing by Derek Caney, Dave Zimmerman)