Tuesday, October 03, 2006

Pepsi Mexican Results Slow

Pepsi Bottling Group (PBG) announced balanced top line growth and solid Q3 earnings. It appears that Mexico is stalling following rapid growth in recent past. Q3 Mexican operating income grew only 5%. Whereas year to date Mexican operating income grew at 43%. PBG reports actual decreases in carbonated case sales and jug water within Mexico. This may represent a soft underbelly in PBG. Europe cannot carry everything and US/Canada while improving still faces intense competition.