Pepsi 2011 Annual Report Download - page 47

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PepsiCo Americas Beverages
% Change
2011 2010 2009 2011 2010
Net revenue $ 22,418 $ 20,401 $ 10,116 10 102
53rd week (288) – –
Net revenue excluding above item* $ 22,130 $ 20,401 $ 10,116 8 102
Impact of foreign currency translation (1) –
Net revenue growth excluding above item, on a constant currency basis* 8** 102
Operating prot $ 3,273 $ 2,776 $ 2,172 18 28
53rd week (35) – –
Restructuring and impairment charges 81 – 16
Merger and integration costs 112 467 –
Inventory fair value adjustments 21 358 –
Venezuela currency devaluation – (9) –
Operating prot excluding above items* $ 3,452 $ 3,592 $ 2,188 (4) 64
Impact of foreign currency translation (0.5) 4
Operating prot growth excluding above items, on a constant currency basis* (4)** 68
* See “Non- GAAP Measures”
** Does not sum due to rounding
2011
Volume increased 2%, primarily reecting a 3% increase in Latin
America volume, as well as volume from incremental brands related
to our DPSG manufacturing and distribution agreement, which
contributed 1percentage point to volume growth. North America
volume, excluding the impact of the incremental DPSG volume,
increased slightly, as a 4% increase in non- carbonated beverage
volume was partially oset by a 2% decline in CSD volume. The
non- carbonated beverage volume growth primarily reected a
double- digit increase in Gatorade sports drinks. The 53rd week
contributed 1percentage point to volume growth.
Net revenue increased 10%, primarily reecting the incremental
nished goods revenue related to our acquisitions of PBG and PAS.
Favorable foreign currency contributed nearly 1percentage point to
net revenue growth and the 53rd week contributed over 1percent-
age point to net revenue growth.
Reported operating prot increased 18%, primarily reecting
the items aecting comparability in the above table (see “Items
Aecting Comparability”). Excluding these items, operating prot
decreased 4%, mainly driven by higher commodity costs and
higher selling and distribution costs, partially oset by the net
revenue growth. Operating prot performance also beneted from
the impact of certain insurance adjustments and more- favorable
settlements of promotional spending accruals in the current year,
which collectively contributed 2percentage points to the reported
operating prot growth. The net impact of the divestiture of our
Mexico beverage business in the fourth quarter contributed 1per-
centage point to reported operating prot growth and included a
one- time gain associated with the contribution of this business to
form a joint venture with both Grupo Embotelladoras Unidas S.A.B.
de C.V. and Empresas Polar.
2010
Volume increased 10%, primarily reecting volume from incremen-
tal brands related to our acquisition of PBG’s operations in Mexico,
which contributed over 6percentage points to volume growth, as
well as incremental volume related to our DPSG manufacturing and
distribution agreement, entered into in connection with our acquisi-
tions of PBG and PAS, which contributed over 5percentage points
to volume growth. North America volume, excluding the impact of
the incremental DPSG volume, declined 1%, driven by a 3% decline
in CSD volume, partially oset by a 1% increase in non- carbonated
beverage volume. The non- carbonated beverage volume growth
primarily reected a mid- single-digit increase in Gatorade sports
drinks and a high- single-digit increase in Lipton ready- to-drink
teas, mostly oset by mid- single-digit declines in our base Aquana
water and Tropicana businesses.
Net revenue increased 102%, primarily reecting the incremental
nished goods revenue related to our acquisitions of PBG and PAS.
Reported operating prot increased 28%, primarily reecting
the incremental operating results from our acquisitions of
PBG and PAS, partially oset by the items aecting comparability
in the above table (see “Items Aecting Comparability”). Excluding
the items aecting comparability, operating prot increased 64%.
Unfavorable foreign currency reduced operating prot performance
by 4percentage points, driven primarily by a 6-percentage- point
unfavorable impact from Venezuela.
Management’s Discussion and Analysis
PepsiCo, Inc.  Annual Report
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