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Restructuring charges reduced operating profit growth by
over 2percentage points and were mostly offset by the 53rd
week, which contributed 2percentage points to operating
profit growth.
Latin America Foods
% Change
2012 2011 2010 2012 2011
Net revenue $ 7,780 $ 7,156 $ 6,315 9 13
Impact of foreign exchange translation 7 (2)
Net revenue growth, on a constant currency basis* 16 11
Operating profit $ 1,059 $ 1,078 $ 1,004 (2) 7
Restructuring and impairment charges 50 48 –
Operating profit excluding above item* $ 1,109 $ 1,126 $ 1,004 (1.5) 12
Impact of foreign exchange translation 5.5 (1)
Operating profit growth excluding above item, on a constant currency basis* 4 11
* See “Non-GAAP Measures”
2012
Net revenue increased 9%, primarily reflecting effective net
pricing and volume growth. Acquisitions and divestitures in
Argentina and Brazil in the prior year contributed 2percentage
points to net revenue growth. Unfavorable foreign exchange
reduced net revenue growth by 7percentage points.
Volume increased 13%, primarily reflecting a mid-single-
digit increase in Mexico and a slight increase in Brazil (excluding
the impact of an acquisition). Acquisitions contributed 9per-
centage points to the volume growth.
Operating profit decreased 2%, driven by higher commodity
costs, which negatively impacted operating profit perfor-
mance by 17 percentage points, as well as other cost increases
reflecting strategic investments. These impacts were partially
offset by the net revenue growth and planned cost reductions
across a number of expense categories. The net impact of
acquisitions and divestitures reduced operating profit growth
by 3.5 percentage points, primarily as a result of a gain in
the prior year associated with the sale of a fish business in
Brazil. Unfavorable foreign exchange reduced operating profit
growth by 5.5percentage points.
2011
Net revenue increased 13%, primarily reflecting effective
net pricing and volume growth. Favorable foreign exchange
contributed 2 percentage points to net revenue growth.
Acquisitions and divestitures had a nominal impact on the net
revenue growth rate.
Volume increased 5%, primarily reflecting mid-single-digit
increases in Brazil (excluding the impact of an acquisition in the
fourth quarter) and at Gamesa in Mexico. Additionally, Sabritas
in Mexico was up slightly. Acquisitions contributed 1percent-
age point to the volume growth.
Operating profit grew 7%, driven by the net revenue growth,
partially offset by higher commodity costs. Acquisitions and
divestitures, which included a gain from the sale of a fish
business in Brazil, contributed nearly 4percentage points to
operating profit growth. Restructuring charges reduced oper-
ating profit growth by 5percentage points.
Management’s Discussion and Analysis
2012 PEPSICO ANNUAL REPORT62