PepsiCo Inc. posted a greater-than-expected quarterly profit on Tuesday on a lower tax rate and higher sales of Frito-Lay snacks.
The world's No. 2 soft-drink company reported earnings of $1.56 billion, or 94 cents per share, for its second quarter, ended June 16, up 13 percent from $1.38 billion, or 81 cents per share, a year earlier.
Analysts on average were expecting 89 cents per share, according to Reuters Estimates.
Quarterly revenue rose to $9.61 billion from $8.71 billion.
The company, based in Purchase, New York, raised its full-year forecast, saying it now expects earnings of at least $3.35 per share, up from its prior forecast of at least $3.30 per share.
Pepsi, which owns Gatorade sports drinks, Quaker Oats cereals, Frito Lay snacks and Rice-A-Roni side dishes, has used its diverse portfolio to offset declining soft-drink sales in the United States, where consumers are instead choosing options such as bottled water and tea.
By contrast Coca-Cola Co. has relied on its deep presence around the world, especially in emerging markets where people still eagerly drink soft drinks.
Yet the rivals' strategies are becoming more similar as Pepsi has been focusing on overseas growth and Coke has acquired noncarbonated beverage makers Glaceau and Fuze.
(Reporting by Martinne Geller)