Pepsi 2007 Annual Report Download - page 4

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Dear Shareholders:
We have titled this year’s annual report “Performance with Purpose: The Journey Continues.”
That’s because in 2007 PepsiCo made great progress toward the long-term corporate
objectives we set for ourselves last year: To achieve business and financial success while
leaving a positive imprint on society.
Once more, our extraordinary associates around the world
delivered terrific performance, and I am delighted to share
with you the following 2007 financial results:
• Net revenue grew 12%, roughly three times the rate of global GDP growth.
• Division operating profit grew 10%.*
• Earnings per share grew 13%.*
• Total return to shareholders was 26%.
• Return on invested capital was 29%.
• Cash flow from operations was $6.9 billion.
In 2007 PepsiCo took important steps to support future growth.
What makes me particularly proud is that our 2007 performance was strong —
not just measured by these short-term metrics — but also with the long-term equally
in mind:
• We increased capital expenditures in plant and equipment worldwide to enable
growth of core brands and expand into new platforms such as baked and crisp-bread
snacks and non-carbonated beverages.
• We added several tuck-in acquisitions in key markets and segments, and we further
expanded our successful coffee and tea joint ventures.
• We created the Chief Scientific Officer position to ensure our technical
capabilities keep pace with increasingly sophisticated consumer demand;
and we funded incremental investment to explore breakthrough
R&D opportunities.
• We maintained focus on building next-generation IT capabilities with
Project One Up, to support our long-term growth prospects worldwide.
Delivering Performance with Purpose in 2007
*See page 86.
Indra Nooyi
Chairman and Chief Executive Officer
22