Pepsi 2013 Annual Report Download - page 78
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60
Volume decreased 2%, driven by a 4% decline in North America volume, partially offset by a 2% increase
in Latin America volume. North America volume declines were driven by a 4% decline in CSDs and a 3%
decline in non-carbonated beverage volumes. The non-carbonated beverage volume decline primarily
reflected a double-digit decline in Tropicana brands and a low-single-digit decline in Gatorade sports drinks.
Latin America volume growth primarily reflected mid-single-digit increases in Mexico and Brazil, partially
offset by a high-single-digit decline in Venezuela. The impact of the 53rd week in the prior year contributed
1 percentage point to the volume decline.
Reported operating profit decreased 10%, primarily reflecting higher commodity costs, which negatively
impacted operating profit performance by 12 percentage points, the volume decline and higher advertising
and marketing expenses, partially offset by effective net pricing and planned cost reductions across a number
of expense categories. Excluding the items affecting comparability in the above table (see “Items Affecting
Comparability”) operating profit declined 12%. The divestiture of our Mexico beverage business in 2011
contributed nearly 3 percentage points to the reported operating profit decline and included a one-time gain
associated with the contribution of this business to form a joint venture with both Organizacion Cultiba SAB
de CV, formerly Geupec, and Empresas Polar. Unfavorable foreign exchange contributed 1 percentage point
to the operating profit decline.
Europe
% Change
2013 2012 2011 2013 2012
Net revenue $ 13,752 $ 13,441 $ 13,560 2(1)
53rd week —— (33)
Net revenue excluding above item(a) $ 13,752 $ 13,441 $ 13,527 2(1)
Impact of foreign exchange translation 17
Net revenue growth excluding above item, on a
constant currency basis(a) 3.5 (b) 6
Operating profit $ 1,293 $ 1,330 $ 1,210 (3) 10
Merger and integration charges 10 11 123
Restructuring and impairment charges 60 42 77
53rd week —— (8)
Inventory fair value adjustments ——25
Operating profit excluding above items(a) $ 1,363 $ 1,383 $ 1,427 (1.5) (3)
Impact of foreign exchange translation 16
Operating profit growth excluding above items,
on a constant currency basis(a) —(b) 3
(a) See “Non-GAAP Measures.”
(b) Does not sum due to rounding.
2013
Net revenue increased 2%, primarily reflecting effective net pricing and volume growth. Unfavorable foreign
exchange reduced net revenue growth by 1 percentage point.
Snacks volume grew 3% primarily reflecting high-single-digit growth in Turkey and South Africa, partially
offset by low-single-digit declines in the United Kingdom and Spain. Additionally, Russia and the Netherlands
experienced low-single-digit growth.