PepsiCo first-quarter revenue beats estimates

PepsiCo’s net income rose to $1.34 billion in the first quarter ended March 24, from $1.32 billion a year earlier. (Reuters)
Updated 26 April 2018
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PepsiCo first-quarter revenue beats estimates

BENGALURU: PepsiCo reported first-quarter sales that topped analysts’ estimate on Thursday on higher demand for its snacks such as Doritos and Cheetos as well as beverages such as Lipton tea.
The company said its Frito-Lay North America snacks business had strong performance with a 3 percent organic revenue growth. Organic revenue excludes benefits from divestitures and acquisitions.
Sales at its beverage unit, which makes Lipton tea and Mountain Dew, fell 1 percent, but were an improvement over the past two quarters when sales fell at least 3 percent.
PepsiCo’s net income rose to $1.34 billion, or 94 cents per share, in the first quarter ended March 24, from $1.32 billion, or 91 cents per share, a year earlier.
Total revenue rose 4.3 percent to $12.56 billion, topping analysts’ estimate of $12.40 billion, according to Thomson Reuters.


Maalem Financing raises $26m in debut sukuk

Updated 17 October 2018
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Maalem Financing raises $26m in debut sukuk

  • The sukuk from Maalem, a shariah-compliant commercial and consumer financing firm, is a small but novel deal
  • The three-year unsubordinated deal was sold through a private placement and Maalem could tap the market again

LONDON: Saudi Arabia’s Maalem Financing has raised SR100 million ($26.6 million) from a debut sale of Islamic bonds, or sukuk, as the firm seeks to develop a crowdfunding product and expand its operations, a senior executive said on Tuesday.
The sukuk from Maalem, a shariah-compliant commercial and consumer financing firm, is a small but novel deal in a market that is dominated by issuance from sovereign institutions and Islamic banks.
The three-year unsubordinated deal was sold through a private placement and Maalem could tap the market again as early as January next year, said John Sandwick, a member of Maalem’s board of directors.
“The program is for SR500 million and with 3.6 times oversubscription, there seems to be a lot of demand,” he said.
Additional sales of sukuk aimed to raise between SR100 million and SR200 million, depending on market conditions, he said, adding that Maalem may consider a dollar-denominated sukuk issuance at a later stage.
The debut transaction used a structure known as murabaha, a cost-plus-profit arrangement commonly used in Saudi Arabia. The firm hoped to use an asset-backed structure for future deals, Sandwick said.
Established in 2009, Maalem received regulatory approval to operate as a non-real estate finance company in 2016 and increased its capital in 2017 to SR150 million.
The company plans to open several regional offices by the end of 2018 and is awaiting regulatory approval for a crowdfunding license, Sandwick said.
Crowdfunding enables startup firms to collect small sums of money from many individuals as an alternative to bank loans.
Albilad Capital, the investment banking unit of Bank Albilad, served as sole lead manager and arranger of the sukuk.