PBG Posts Lacklustre Results, PepsiCo Still Interested In Takeover

The Pepsi Bottling Group (PBG) has reported that its net sales in the first six months of 2009 fell by nearly 7% to US$5.78bn. Operating profits over the period fell by 12% to US$426mn although net profits rose by 21% thanks largely to a one-off tax gain. The group's CEO Eric Foss has insisted that the results were ahead of expectations and that PBG is still on track to hit its full year-earnings targets. However, the firm remains in the sights of PepsiCo and these figures are unlikely to strengthen its assertion that the soft drink giant is currently undervaluing the business.

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