PepsiCo’s 2nd-qtr net income falls 3 percent on currency woes; revenue rises on bottler deals

Summary Box: PepsiCo’s 2Q net income edges down

THE QUARTER: PepsiCo’s second-quarter net income fell 3 percent on costs for its bottler buyout. But revenue rose 40 percent and PepsiCo’s U.S. beverages unit started to improve.

THE BEVERAGES: U.S. beverage sales are sagging as people switch to juices and teas. Volume fell 1 percent when a new distribution agreement is excluded. But that’s better than last year’s 6 percent drop.

THE STORES: Convenience store business improved. That’s profitable because PepsiCo sells smaller packages at higher prices. CEO Indra Nooyi said it was too soon to tell how the rest of the year would be.