Pepsi 2013 Annual Report Download - page 74
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56
Frito-Lay North America
% Change
2013 2012 2011 2013 2012
Net revenue $14,126 $13,574 $13,322 4 2
53rd week —— (260)
Net revenue excluding above item(a) $14,126 $13,574 $13,062 4 4
Impact of foreign exchange translation — —
Net revenue growth excluding above item, on a
constant currency basis(a) 44
Operating profit $ 3,877 $ 3,646 $ 3,621 6 1
Restructuring and impairment charges 19 38 76
53rd week —— (72)
Operating profit excluding above items(a) $ 3,896 $ 3,684 $ 3,625 6 2
Impact of foreign exchange translation — —
Operating profit growth excluding above items,
on a constant currency basis(a) 6 2
(a) See “Non-GAAP Measures.”
2013
Net revenue grew 4% and pound volume grew 3%. Net revenue growth was driven by the volume growth
and effective net pricing. The volume growth reflects high-single-digit growth in trademark Cheetos and in
variety packs, low-single-digit growth in trademark Lay’s and double-digit growth in our Sabra joint venture.
These gains were partially offset by a double-digit decline in trademark SunChips.
Operating profit grew 6%, primarily reflecting the net revenue growth and planned cost reductions across a
number of expense categories, as well as lower commodity costs, primarily cooking oil, which increased
operating profit growth by 2 percentage points. These impacts were partially offset by certain operating cost
increases including strategic initiatives.
2012
Net revenue increased 2% and pound volume declined 1%. Net revenue growth was driven by effective net
pricing, partially offset by the volume decline. The volume performance reflects double-digit declines in
trademark SunChips and Rold Gold, a low-single-digit decline in trademark Lay’s and a mid-single-digit
decline in trademark Tostitos, partially offset by a high-single-digit increase in variety packs and a double-
digit increase in our Sabra joint venture. The impact of the 53rd week in the prior year reduced both volume
and net revenue performance by 2 percentage points.
Operating profit grew 1%, driven by the net revenue growth and planned cost reductions across a number
of expense categories, partially offset by higher commodity costs, primarily cooking oil, which reduced
operating profit growth by 6 percentage points, and higher advertising and marketing expenses. The impact
of the 53rd week in the prior year reduced operating profit growth by 2 percentage points. Lower restructuring
and impairment charges contributed 1 percentage point to operating profit growth.