Pepsi Bottling Group reports revenue increase

The company, which is 40% owned by PepsiCo, said price increases helped revenue in the US and Canada increase by 5%.

Sales volumes dipped by 3% worldwide and by 4% in the US and Canada as a result of the absence of the Easter holiday, which fell in the first quarter of 2008, and “overall weakness in the liquid refreshment beverage category”, the company said.

Analysts said the economic environment remained “extremely challenging” for bottlers worldwide owing to the rising price of fuel and packaging materials and consumers changing their buying habits.

Nevertheless, sales volumes in Europe rose by 1%, as “solid mid-single-digit growth” in Russia and Turkey was partially offset by declines in Spain.

In Mexico, volume dipped 3% owing to price increases to drive improved margins.

PBG chief executive Eric Foss said for the rest of 2008 the company would take “appropriate action” to improve profits in the US and Canada, build on its recent improvements in Mexico and maximise the potential of growing European markets.

PBG employs around 70,000 people in the US, Canada, Greece, Mexico, Russia, Spain and Turkey. Annual sales are nearly $14bn.

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