Pepsi 2010 Annual Report Download - page 68

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67
PepsiCo Americas Beverages
% Change
2010 2009 2008 2010 2009
Net revenue $20,401 $10,116 $10,937 102 (8)
Impact of foreign currency translation – 1
Net revenue growth, on a constant currency basis* 102 (6)**
Operating prot $ 2,776 $ 2,172 $ 2,026 28 7
Restructuring and impairment charges – 16 289
Merger and integration costs 467 – –
Inventory fair value adjustments 358 – –
Venezuela currency devaluation (9) – –
Operating prot, excluding above items* $ 3,592 $ 2,188 $ 2,315 64 (5.5)
Impact of foreign currency translation 4 3
Operating prot, excluding above items, on a constant currency basis* 68 (3)**
* See “Non-GAAP Measures”
** Does not sum due to rounding
2010
Volume increased 10%, primarily reflecting volume from incre-
mental 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man-
ufacturing and distribution agreement, entered into in connec-
tion with our acquisitions of PBG and PAS, which contributed
over 5percentage points to volume growth. North America
volumes, 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 reflected 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 Aquafina water and
Tropicana businesses.
Net revenue increased 102%, primarily reflecting the incre-
mental finished goods revenue related to our acquisitions of PBG
and PAS.
Reported operating profit increased 28%, primarily reflect-
ing the incremental operating results from our acquisitions of
PBG and PAS, partially oset by the items aecting compara-
bility in the above table (see “Items Aecting Comparability”).
Excluding the items aecting comparability, operating profit
increased 64%. Unfavorable foreign currency reduced operating
profit performance by 4percentage points, driven primarily by a
6- percentage-point unfavorable impact from Venezuela.
2009
BCS volume declined 6%, reflecting continued softness in the
North America liquid refreshment beverage category.
In North America, non-carbonated beverage volume declined
11%, primarily driven by double-digit declines in Gatorade sports
drinks and in our base Aquafina water business. CSD volumes
declined 5%.
Net revenue declined 8%, primarily reflecting the volume
declines. Unfavorable foreign currency contributed over 1per-
centage point to the net revenue decline.
Operating profit increased 7%, primarily reflecting lower
restructuring and impairment charges in 2009 related to our
Productivity for Growth program. Excluding restructuring and
impairment charges, operating profit declined 5.5%, primarily
reflecting the net revenue performance. Operating profit was
also negatively impacted by unfavorable foreign currency which
reduced operating profit growth by almost 3percentage points.
Europe
% Change
2010 2009 2008 2010 2009
Net revenue $9,254 $6,727 $6,891 38 (2)
Impact of foreign currency translation 2 12
Net revenue growth, on a constant currency basis* 40 10
Operating prot $1,020 $ 932 $ 910 9 2
Restructuring and impairment charges – 1 50
Merger and integration costs 111 1 –
Inventory fair value adjustments 40 – –
Operating prot, excluding above items* $1,171 $ 934 $ 960 25 (3)
Impact of foreign currency translation 1 17
Operating prot growth excluding above items, on a constant currency basis* 26 13**
* See “Non-GAAP Measures”
** Does not sum due to rounding