Pepsi 2011 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2011 Pepsi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

Frito- Lay North America
% Change
2011 2010 2009 2011 2010
Net revenue $ 13,322 $ 12,573 $ 12,421 6 1
53rd week (260) – –
Net revenue excluding above item* $ 13,062 $ 12,573 $ 12,421 4 1
Impact of foreign currency translation – (1)
Net revenue growth excluding above item, on a constant currency basis* 3.5** –
Operating prot $ 3,621 $ 3,376 $ 3,105 7 9
53rd week (72) – –
Restructuring and impairment charges 76 – 1
Operating prot excluding above items* $ 3,625 $ 3,376 $ 3,106 7 9
Impact of foreign currency translation – (1)
Operating prot growth excluding above items, on a constant currency basis* 7 8
* See “Non- GAAP Measures”
** Does not sum due to rounding
2011
Net revenue increased 6% and pound volume grew 3%. The volume
growth primarily reects double- digit growth in our Sabra joint
venture and in variety packs, as well as mid- single-digit growth in
trademark Doritos, Cheetos and Rues. These gains were partially
oset by a double- digit decline in trademark SunChips. Net rev-
enue growth also beneted from eective net pricing. The 53rd
week contributed 2percentage points to both net revenue and
volume growth.
Operating prot grew 7%, primarily reecting the net revenue
growth. Restructuring charges reduced operating prot growth
by 2percentage points and were oset by the 53rd week, which
contributed 2percentage points to operating prot growth.
2010
Pound volume decreased 1%, primarily due to the overlap of the
2009 “20% More Free” promotion, as well as a double- digit decline
in SunChips, partially oset by mid- single-digit growth in trademark
Lay’s. Net revenue grew 1%, primarily reecting mid- single-digit
revenue growth in trademark Lay’s, double- digit revenue growth
in variety packs and high- single-digit revenue growth in trademark
Rues. These gains were partially oset by a double- digit revenue
decline in SunChips and a mid- single-digit revenue decline in
Tostitos. Foreign currency contributed 1percentage point to the net
revenue growth.
Operating prot grew 9%, reecting lower commodity costs,
primarily cooking oil.
Quaker Foods North America
% Change
2011 2010 2009 2011 2010
Net revenue $ 2,656 $ 2,656 $ 2,687 – (1)
53rd week (42) – –
Net revenue excluding above item* $ 2,614 $ 2,656 $ 2,687 (2) (1)
Impact of foreign currency translation (1) (1)
Net revenue growth excluding above item, on a constant currency basis* (2)** (2)
Operating prot $ 797 $ 741 $ 781 8 (5)
53rd week (12) – –
Restructuring and impairment charges 18 – 2
Operating prot excluding above items* $ 803 $ 741 $ 783 8 (5)
Impact of foreign currency translation (0.5) (1)
Operating prot growth excluding above items, on a constant currency basis* 8** (6)
* See “Non- GAAP Measures”
** Does not sum due to rounding
2011
Net revenue was at and volume declined 5%. The volume decline
primarily reects double- digit volume declines in ready- to-eat
cereals and Chewy granola bars, as well as a mid- single-digit decline
in Aunt Jemima syrup and mix. The impact of positive net pric-
ing, driven primarily by price increases taken in the fourth quarter
of 2010, was partially oset by negative mix. Favorable foreign
currency contributed nearly 1percentage point to the net revenue
performance. The 53rd week positively contributed almost 2per-
centage points to both the net revenue and volume performance.
Operating prot grew 8%, primarily reecting the favorable
eective net pricing, partially oset by the volume declines. Gains
on the divestiture of a business and the sale of a distribution
center increased operating prot growth by 4percentage points,
Management’s Discussion and Analysis
PepsiCo, Inc.  Annual Report
