PepsiCo profit declines 21 percent
PepsiCo Inc.’s profit fell 21 percent in the second quarter, as a deal to expand its business in China and a stronger dollar offset growth overseas.
The company, whose brands include Frito-Lay, Gatorade and Tropicana, said Wednesday that it booked charges in the quarter related to the refranchising of its beverage business in China to Tingyi Holding Corp. The move is considered key because it dramatically expands PepsiCo’s reach in a fast-growing region. Meanwhile, price hikes around the world helped offset rising costs for ingredients.
