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59
PepsiCo Americas Beverages
% Change
2013 2012 2011 2013 2012
Net revenue $ 21,068 $ 21,408 $ 22,418 (2) (4.5)
53rd week —— (288)
Net revenue excluding above item(a) $ 21,068 $ 21,408 $ 22,130 (2) (3)
Impact of foreign exchange translation 1—
Net revenue growth excluding above item, on a
constant currency basis(a) (1) (3)
Operating profit $ 2,955 $ 2,937 $ 3,273 1 (10)
Merger and integration charges —— 112
Restructuring and impairment charges 31 102 81
Venezuela currency devaluation (13) ——
53rd week —— (35)
Inventory fair value adjustments ——21
Operating profit excluding above items(a) $ 2,973 $ 3,039 $ 3,452 (2) (12)
Impact of foreign exchange translation 31
Operating profit growth excluding above
items, on a constant currency basis(a) 1(11)
(a) See “Non-GAAP Measures.”
2013
Net revenue decreased 2%, reflecting volume declines, partially offset by favorable effective net pricing.
Unfavorable foreign exchange negatively impacted net revenue performance by 1 percentage point.
Volume decreased 3%, primarily reflecting North America volume declines of 4%, while Latin America
volume was even with the prior year. The North America volume performance was driven by a 5% decline
in CSD volume and a 2% decline in non-carbonated beverage volume. The North America non-carbonated
beverage volume decline primarily reflected a high-single-digit decline in our overall water portfolio. The
Latin America volume performance primarily reflected a double-digit decrease in Brazil and a low-single-
digit decrease in Argentina, offset by a double-digit increase in Venezuela and a low-single-digit increase in
Mexico.
Reported operating profit increased 1%. Excluding the items affecting comparability in the above table (see
“Items Affecting Comparability”), operating profit declined 2%, primarily reflecting the volume declines
and certain operating cost increases. These impacts were partially offset by the favorable effective net pricing
and planned cost reductions across a number of expense categories, as well as lower commodity costs, which
increased reported operating profit by 6 percentage points. Unfavorable foreign exchange reduced operating
profit growth by 3 percentage points.
Mexico recently imposed a tax on sugar-sweetened beverages. These taxes may adversely affect PAB’s future
financial performance. See also “Imposition of new taxes, disagreements with tax authorities or additional
tax liabilities could adversely affect our financial performance.” in “Risk Factors” in Item 1A.
2012
Net revenue decreased 4.5%, primarily reflecting the divestiture of our Mexico beverage business in the
fourth quarter of 2011, which contributed 5 percentage points to the net revenue decline. Additionally, volume
declines were offset by favorable effective net pricing. The impact of the 53rd week in the prior year contributed
over 1 percentage point to the net revenue decline.