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58
Quaker Foods North America
% Change
2014 2013 2012 2014 2013
Net revenue $ 2,568 $ 2,612 $ 2,636 (2) (1)
Impact of foreign exchange translation 1—
Net revenue growth on a constant currency
basis(a) (1) (0.5) (b)
Operating profit $ 621 $ 617 $ 695 1 (11)
Restructuring and impairment charges 14 4 9
Operating profit excluding above item(a) $ 635 $ 621 $ 704 2 (12)
Impact of foreign exchange translation 1—
Operating profit growth excluding above item,
on a constant currency basis(a) 3(11) (b)
(a) See “Non-GAAP Measures.”
(b) Does not sum due to rounding.
2014
Net revenue declined 2% and volume was even with the prior year. The net revenue decline primarily reflects
unfavorable net pricing and unfavorable foreign exchange, which negatively impacted net revenue
performance by 1 percentage point. The volume performance reflects low-single-digit declines in Aunt
Jemima syrup and mix and ready-to-eat cereals, a mid-single-digit decline in regional grains, as well as a
double-digit decline in cookies, offset by low-single-digit growth in Oatmeal.
Operating profit increased 1%, primarily driven by planned cost reductions across a number of expense
categories, improvement in our share of the operating results of our Müller Quaker Dairy (MQD) joint
venture, which reflected start-up costs in the prior year, and lower advertising and marketing expenses.
Additionally, the net gain on the divestiture of a cereal business contributed 3 percentage points to operating
profit growth. These impacts were partially offset by the unfavorable net pricing and mix, as well as certain
operating cost increases.
2013
Net revenue declined 1% and volume increased 3%. The net revenue decline primarily reflects unfavorable
product mix. The volume growth primarily reflects growth in MQD products (launched in 2012) and low-
single-digit growth in Oatmeal and Aunt Jemima syrup and mix.
Operating profit declined 11%, reflecting the unfavorable product mix, as well as our share of the operating
results of our MQD joint venture, which negatively impacted operating profit performance by 6 percentage
points, and certain operating cost increases reflecting strategic initiatives. These impacts were partially offset
by planned cost reductions across a number of expense categories and the volume growth.
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