Pepsi 2014 Annual Report Download - page 77

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57
Frito-Lay North America
% Change
2014 2013 2012 2014 2013
Net revenue $14,502 $14,126 $13,574 3 4
Impact of foreign exchange translation 1 —
Net revenue growth on a constant currency
basis(a) 3(b) 4
Operating profit $ 4,054 $ 3,877 $ 3,646 5 6
Restructuring and impairment charges 48 19 38
Operating profit excluding above item(a) $ 4,102 $ 3,896 $ 3,684 5 6
Impact of foreign exchange translation 0.5 —
Operating profit growth excluding above item,
on a constant currency basis(a) 6(b) 6
(a) See “Non-GAAP Measures.”
(b) Does not sum due to rounding.
2014
Net revenue grew 3% and volume grew 2%. Net revenue growth was driven by the volume growth and
effective net pricing. The volume growth reflects mid-single-digit growth in trademark Doritos, double-digit
growth in variety packs and our Sabra joint venture products and low-single-digit growth in dips. These gains
were partially offset by a double-digit decline in trademark SunChips.
Operating profit grew 5%, primarily reflecting the net revenue growth and planned cost reductions across a
number of expense categories, as well as lower commodity costs, primarily cooking oil and corn, which
increased operating profit growth by 2 percentage points. These impacts were partially offset by certain
operating cost increases including strategic initiatives.
2013
Net revenue grew 4% and volume grew 3%. Net revenue growth was driven by the volume growth and
effective net pricing. The volume growth reflects high-single-digit growth in trademark Cheetos and in variety
packs, low-single-digit growth in trademark Lay’s and double-digit growth in our Sabra joint venture. These
gains were partially offset by a double-digit decline in trademark SunChips.
Operating profit grew 6%, primarily reflecting the net revenue growth and planned cost reductions across a
number of expense categories, as well as lower commodity costs, primarily cooking oil, which increased
operating profit growth by 2 percentage points. These impacts were partially offset by certain operating cost
increases including strategic initiatives.