(PRINTWORDS NEWS) Pepsico has reported an increase in profit in its third quarter by 12%. The company however has lowered the top over its annual profit forecast, as the company is planning to increase its investment in China and North America. The Pepsico profits rise according to wall street journal, are a result of improvements in its US beverages along with an increase in snack sales in Latin America.
The move to invest in foreign markets is a business necessity for the company. The company has a much better chance of growing its revenue in a developing market like China than in the markets back home as the market is almost saturated there.
Pepsico CEO, Indira Nooyi said that investments in emerging markets do not show returns in a single quarter but are profitable in the long run. Moreover, the company is spending with a view of increasing its presence in Russia, India and China among other places. Pepsico and rival companies have been eying the international market, which has better prospects in terms of growth and revenue.
The company is said to be creating a global nutrition group. The group will develop products with fruits, vegetables, dairy and grain. The company has been making an effort to move towards more healthy products. The Chicago based division will be run by Mehmood Khan, their chief scientific officer. The reinvestment being made by the company are higher than usual but will supposedly help the company increasing its profit and make a firm hold in the emerging markets.
