Pepsi 2011 Annual Report Download - page 46

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and a change in accounting methodology for inventory contrib-
uted 2percentage points to operating prot growth (see Note 1).
Restructuring charges reduced operating prot growth by over
2percentage points and were mostly oset by the 53rd week, which
contributed 2percentage points to operating prot growth.
2010
Net revenue declined 1% and volume was at. Low- single-digit
volume declines in Oatmeal and ready- to-eat cereals were
mostly oset by high- single-digit growth in Chewy granola bars.
Unfavorable mix and net pricing contributed to the net revenue
decline. Favorable foreign currency positively contributed
1percentage point to net revenue performance.
Operating prot declined 5%, primarily reecting the net
revenue performance, as well as insurance settlement recover-
ies recorded in the prior year related to the Cedar Rapids ood,
which negatively impacted operating prot performance by over
2 percentage points.
Latin America Foods
% Change
2011 2010 2009 2011 2010
Net revenue $ 7,156 $ 6,315 $ 5,703 13 11
Impact of foreign currency translation (2) (1)
Net revenue growth, on a constant currency basis* 11 10
Operating prot $ 1,078 $ 1,004 $ 904 7 11
Restructuring and impairment charges 48 – 3
Operating prot excluding above item* $ 1,126 $ 1,004 $ 907 12 11
Impact of foreign currency translation (1) –
Operating prot growth excluding above item, on a constant currency basis* 11 11
* See “Non- GAAP Measures”
2011
Volume increased 5%, primarily reecting 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percentage
pointto the volume growth.
Net revenue increased 13%, primarily reecting eective net
pricing and the volume growth. Favorable foreign currency contrib-
uted 2percentage points to net revenue growth. Acquisitions and
divestitures had a nominal impact on the net revenue growth rate.
Operating prot grew 7%, driven by the net revenue growth,
partially oset by higher commodity costs. Acquisitions and
divestitures, which included a gain from the sale of a sh business
in Brazil, contributed nearly 4percentage points to operating prot
growth. Restructuring charges reduced operating prot growth
by5percentage points.
2010
Volume increased 4%, reecting mid- single-digit increases at
Sabritas in Mexico and Brazil. Additionally, Gamesa in Mexico grew
at a low- single-digit rate.
Net revenue increased 11%, primarily reecting favorable eective
net pricing and the volume growth. Net revenue growth reected
1percentage point of favorable foreign currency, which was net of a
6-percentage- point unfavorable impact from Venezuela.
Operating prot grew 11%, primarily reecting the net revenue
growth. Unfavorable foreign currency reduced operating prot
growth slightly, as an 8-percentage- point unfavorable impact from
Venezuela was oset by favorable foreign currency in other markets.
Management’s Discussion and Analysis
PepsiCo, Inc.  Annual Report
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