US soft drink maker PepsiCo said today profits jumped 18 per cent, led by strong sales of new drinks in the US and volume gains across all divisions.
This is the sixth consecutive quarter that PepsiCo posted double-digit growth in its earnings.
PepsiCo earned $498 million up from $422 million a year earlier.
Shares of PepsiCo, which expects to complete its purchase of Quaker Oatsby the end of June, jumped as high as $42.25 in early morning trading and were last up 93 cents at $42.20.
PepsiCo shares have outperformed those of arch rival Coca-Cola by more than 15 per cent over the last 52 weeks.
Net sales climbed 8 per cent to $4.54 billion and would have jumped 10 per cent excluding the impact of the strong dollar, PepsiCo said.
UBS Warburg's Ms Caroline Levy said she was very impressed with the top line growth. "I can't think of any other consumer company doing anything like that right now," she said. "I think the top line is particularly commendable, you can manage your bottom line. The momentum here is extremely strong."
The US soft drink business has been sluggish recently, as consumers search for variety and healthy alternatives, but Pepsi has continued to fare well by adding non carbonated drinks and new flavors to its lineup and promoting its core Pepsi brand.