American food and beverage company PepsiCo reported that its net income for the third quarter 2012 fell 5% to $1.9bn, compared to $2bn during the previous year, due to increased spending on advertising, higher commodity costs and negative impact from foreign-exchange translation.
Revenue decreased 5% to $16.65bn, down from $ 17.58bn last year, due to the refranchising of its bottling businesses in China and Mexico and the effect of currency fluctuations.
Excluding these factors, revenue increased 5%, reflecting 1% volume growth and 4% price increases.
PepsiCo chairman and CEO Indra Nooyi said the company is implementing the plan announced earlier this year and is on track to achieve its full-year targets.
"We will continue to invest aggressively to build our brands, accelerate innovation to drive growth, focus on execution and deliver our productivity agenda while returning cash to shareholders," Nooyi added.
Earlier in 2012, PepsiCo rolled out a plan to lower costs and invest at least $600m in additional advertising money in its top brands, and roll out a range of new products.
The company stood by its full year outlook - it expects the earnings per share to decrease 5% from the $4.40 it earned in 2011, and revenue to rise by a low single-digit rate.
