Pepsi 2011 Annual Report Download - page 48

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Europe
% Change
2011 2010 2009 2011 2010
Net revenue $ 13,560 $ 9,602 $ 7,028 41 37
53rd week (33) – –
Net revenue excluding above item* $ 13,527 $ 9,602 $ 7,028 41 37
Impact of foreign currency translation (3) 1
Net revenue growth excluding above item, on a constant currency basis* 38 38
Operating prot $ 1,210 $ 1,054 $ 948 15 11
53rd week (8) – –
Restructuring and impairment charges 77 – 2
Merger and integration costs 123 111 1
Inventory fair value adjustments 25 40 –
Operating prot excluding above items* $ 1,427 $ 1,205 $ 951 18 27
Impact of foreign currency translation (4) 1
Operating prot growth excluding above items, on a constant currency basis* 14 27**
* See “Non- GAAP Measures”
** Does not sum due to rounding
2011
Snacks volume grew 35%, primarily reecting our acquisition
of WBD, which contributed 31percentage points to volume
growth. Double- digit growth in Turkey and South Africa and
high-single-digit growth in Russia (ex- WBD) was partially oset
by amid- single-digit decline in Spain. Additionally, Walkers in the
United Kingdom experienced low- single-digit growth.
Beverage volume increased 21%, primarily reecting our acquisi-
tion of WBD, which contributed 20percentage points to volume
growth, and incremental brands related to our acquisitions of PBG
and PAS, which contributed nearly 1percentage point to volume
growth. A double- digit increase in Turkey and mid- single-digit
increases in the United Kingdom and France were oset by a
high-single-digit decline in Russia (ex- WBD).
Net revenue grew 41%, primarily reecting our acquisition of
WBD, which contributed 29percentage points to net revenue
growth, and the incremental nished goods revenue related to our
acquisitions of PBG and PAS. Favorable foreign currency contributed
3percentage points to net revenue growth.
Reported operating prot increased 15%, primarily reecting
the net revenue growth, partially oset by higher commodity
costs. Our acquisition of WBD contributed 19percentage points to
the reported operating prot growth and reected net charges of
$56million included in items aecting comparability in the above
table (see “Items Aecting Comparability”). Excluding the items
aecting comparability, operating prot increased 18%. Favorable
foreign currency contributed 4percentage points to operating
prot growth.
2010
Snacks volume increased 2%, reecting high- single-digit growth
in South Africa and Quaker in the United Kingdom, a double- digit
increase in France and mid- single-digit increases in Russia and
Turkey. These gains were partially oset by a double- digit decline
in Romania and a low- single-digit decline in Spain. Additionally,
Walkers in the United Kingdom experienced low- single-digit growth.
Beverage volume increased 10%, reecting double- digit increases
in Russia and Turkey, high- single-digit growth in Poland and France
and a mid- single-digit increase in the United Kingdom. These
gains were partially oset by a double- digit decline in Romania.
Additionally, incremental brands related to our acquisitions of
PBG and PAS contributed 5percentage points to the beverage
volume growth.
Net revenue grew 37%, primarily reecting the incremental n-
ished goods revenue related to our acquisitions of PBG and PAS.
Unfavorable foreign currency reduced net revenue growth by over
1percentage point.
Operating prot grew 11%, primarily reecting incremental oper-
ating results from our acquisitions of PBG and PAS. Operating prot
growth was also adversely impacted by the items aecting com-
parability in the above table (see “Items Aecting Comparability”).
Excluding these items, operating prot increased 27%. Unfavorable
foreign currency reduced operating prot growth by 1percent-
age point.
Management’s Discussion and Analysis
PepsiCo, Inc.  Annual Report
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