PepsiCo Q2 organic revenue growth 5.1 percent
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Core constant currency operating profit increased 8 percent.
Developing and emerging market organic revenue grew 11 percent. On a reported basis, developing and emerging market net revenue declined 13 percent, reflecting unfavorable foreign exchange translation, in particular, related to the Russian ruble, Venezuelan bolivar, euro and Mexican peso.
Core gross margin and core operating margin expanded 115 basis points and 60 basis points, respectively. Reported gross margin and reported operating margin expanded 105 basis points and 110 basis points, respectively.
Core constant currency operating profit increased 8 percent. Reported operating profit was even with the prior-year quarter and reflects unfavorable foreign exchange translation, restructuring charges and the mark-to-market net impact on commodity hedges.
The company's core effective tax rate was 26 percent, which compares to 26.3 percent in the prior-year quarter. The reported effective tax rate was 26.1 percent, below the prior-year quarter of 26.5 percent.
Core EPS was $1.32 and reported EPS was $1.33. Core EPS excludes $0.02 per share related to the mark-to-market net impact on commodity hedges and a $0.01 per share negative impact from restructuring charges. ■