PEPSI Bottling Group Inc, the world's second-largest soda distributor, has reported second-quarter profit that rose more than some analysts estimated after the bottler increased prices and sold more drinks in Europe.

Full-year profit will climb to US$2.30 to US$2.38 a share, Pepsi Bottling reaffirmed. Revenue may rise 5 percent to 6 percent, less than the 6-percent to 7-percent gain it previously expected.

Second-quarter net income advanced 7.4 percent to US$174 million, or 78 cents a share, from US$162 million, or 70 cents, a year earlier, the New York-based company said yesterday.

Sales for the three months ended June 14 climbed 4.8 percent to US$3.52 billion from US$3.36 billion. Pepsi Bottling boosted prices to blunt higher costs for corn sweetener, aluminum cans and oil. Net revenue per case increased 8 percent, led by Europe and Mexico.

"In the most difficult environment for non-alcoholic beverages in recent memory, Pepsi Bottling Group appears to be toughing it out," Carlos Laboy, an analyst at Credit Suisse Holdings USA, said in a July 2 note. He recommends investors hold the shares.

Eleven analysts surveyed by Bloomberg News estimated average profit of 75 US cents a share.