Pepsi 2014 Annual Report Download - page 82
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62
each of which reduced operating profit growth by 2 percentage points. See Note 3 for additional information
on “Other Productivity Initiatives.”
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.
Beverage volume declined 1%, reflecting low-single-digit declines in Turkey, Germany and 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.
PepsiCo Asia, Middle East and Africa
% Change
2014 2013 2012 2014 2013
Net revenue $ 6,727 $ 6,507 $ 6,653 3 (2)
Impact of foreign exchange translation 34
Net revenue growth, on a constant currency basis(a) 62
Operating profit $ 1,043 $ 1,174 $ 747 (11) 57
Restructuring and impairment charges 37 26 28
Restructuring and other charges related to the
transaction with Tingyi —— 150
Operating profit excluding above items(a) $ 1,080 $ 1,200 $ 925 (10) 30
Impact of foreign exchange translation 22
Operating profit growth excluding above items, on a
constant currency basis(a) (8) 32
(a) See “Non-GAAP Measures.”
2014
Net revenue grew 3%, reflecting volume growth and favorable effective net pricing, partially offset by the
net impact of the refranchising of our beverage businesses in Vietnam and the Middle East, which reduced
net revenue growth by 1.5 percentage points. Unfavorable foreign exchange reduced net revenue growth by
3 percentage points.
Snacks volume grew 8%, reflecting double-digit growth in China and high-single-digit growth in India,
partially offset by a mid-single-digit decline in Thailand. Additionally, Australia experienced mid-single-
digit growth and the Middle East experienced high-single-digit growth.
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