PepsiCo Inc reported higher quarterly earnings on Thursday, helped by the recent purchase of its largest bottlers and sales gains in its snack and international beverage businesses.
The maker of Pepsi-Cola and Frito-Lay snacks said net income was $1.43 billion, or 89 cents per share, in the first quarter ended on March 20, up from $1.14 billion, or 72 cents per share, a year earlier.
Revenue rose 13 percent to $9.37 billion.
PepsiCo just acquired its largest bottlers for $7.8 billion in a bid for more control over the distribution of its drinks in North America. Aside from giving it more flexibility and speed in developing new products, Pepsi sees the deal resulting in $400 million of cost savings.
Archrival Coca-Cola Co is doing a similar deal, but that is not expected to close until the fourth quarter, giving Pepsi a head start of six months or more.
PepsiCo affirmed its profit target, which calls for earnings per share to grow 11 percent to 13 percent in 2010, excluding currency fluctuations.
(Reporting by Martinne Geller; Editing by Lisa Von Ahn)