Pepsi 2013 Annual Report Download - page 79

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61
Beverage volume declined 1%, reflecting low-single-digit declines in Turkey, Germany and in Russia,
partially offset by slight growth in the United Kingdom.
Operating profit declined 3%, primarily driven by certain operating cost increases reflecting strategic
initiatives, as well as higher commodity costs, primarily milk, which negatively impacted operating profit
performance by 15 percentage points, partially offset by the net revenue growth and planned cost reductions
across a number of expense categories. Incremental investments in our business negatively impacted operating
profit performance by 2 percentage points, which was substantially offset by the impact of lapping prior year
impairment charges, which positively contributed nearly 2 percentage points to operating profit performance.
The impact of items affecting comparability in the above table (see “Items Affecting Comparability”)
negatively impacted operating profit performance by 1.5 percentage points.
2012
Net revenue decreased 1%, primarily reflecting unfavorable foreign exchange, which reduced net revenue
growth by 7 percentage points, partially offset by effective net pricing. Our acquisition of WBD positively
contributed 2 percentage points to the net revenue performance.
Snacks volume grew 3%, mainly due to our acquisition of WBD, which contributed 2 percentage points to
volume growth and declined slightly for the comparable post-acquisition period. Double-digit growth in
Russia (ex-WBD) and mid-single-digit growth in South Africa were partially offset by a mid-single-digit
decline in Poland. Additionally, the United Kingdom was flat.
Beverage volume increased 1%, primarily reflecting our acquisition of WBD, which contributed over 1
percentage point to volume growth and increased at a low-single-digit rate for the comparable post-acquisition
period. Volume growth also reflected mid-single-digit growth in Turkey and low-single-digit growth in Russia
(ex-WBD) and the United Kingdom. These increases were partially offset by a high-single-digit decline in
Poland and a low-single-digit decline in Germany.
Operating profit increased 10%, primarily reflecting the items affecting comparability in the above table (see
“Items Affecting Comparability”). Excluding these items affecting comparability, operating profit declined
3%, driven by higher commodity costs and unfavorable foreign exchange, which reduced reported operating
profit performance by 17 percentage points and 6 percentage points, respectively, as well as certain operating
cost increases reflecting strategic initiatives. These impacts were partially offset by the effective net pricing
and planned cost reductions across a number of expense categories. Additionally, certain impairment charges
primarily associated with our operations in Greece reduced reported operating profit growth by 2 percentage
points.