Pepsi is the world’s second largest drinks group.

  PepsiCo, the world’s second largest drinks company, has announced strong full-year profits for 2007, driven by the popularity of its snacks and soft drinks.

Net revenue for the year rose 12% whilst operating profits were up 10%. Snack and drinks revenues increased 9% and 8% respectively.

On announcing the figures, the group also unveiled results for the fourth quarter 2007. For the period, net revenues rose 17% whilst operating profit was up 9%.

PepsiCo Chairman and CEO Indra Nooyi commented on the results: “Our strong top- and bottom-line results in 2007 once again demonstrated the balance and strength of our global portfolio. All of our segments posted solid results for the year. As we begin 2008, I am confident we have the right strategies in place to deliver full year performance consistent with our long-term profit guidance.”

The company, which is second only to Coca Cola in global soft drink sales, has predicted that sales in 2008 will increase between 3% and 5%. It expects profits to rise between 5% and 10%.

PepsiCo owns the Pepsi, Frito Lay, Tropicana, Quakers and Gatorade brands. It recently partnered with Starbucks to sell Frappucino bottled drinks in China.

By Natasha Piscitelli