Pepsi 2015 Annual Report Download - page 82
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Table of Contents
65
See Note 3 to our consolidated financial statements for additional information on “Other Productivity
Initiatives.”
2014
Net revenue increased 1%, primarily reflecting effective net pricing, including 7 percentage points related to
inflation-based pricing in Venezuela, partially offset by net volume declines. Unfavorable foreign exchange
reduced net revenue growth by 9 percentage points.
Snacks volume declined 2%, reflecting a mid-single-digit decline in Mexico due to a tax on certain packaged
foods, which became effective during the first quarter of 2014. Additionally, Brazil experienced a low-single-
digit decline.
Beverage volume increased 4%, reflecting low-single-digit increases in Brazil and Mexico, partially offset
by low-single-digit declines in Argentina and Venezuela. The beverage volume growth included a 2-
percentage-point contribution from certain of our bottler’s brands relating to a new joint venture in Chile.
Operating profit increased 1%, primarily reflecting the effective net pricing and planned cost reductions across
a number of expense categories, as well as the net impact of adjustments recognized through our share of the
results of a joint venture, which increased operating profit growth by 2 percentage points. These impacts were
partially offset by certain operating cost increases, including strategic initiatives, higher commodity costs led
by Venezuela, primarily reflecting packaging and potato inflation, which reduced operating profit growth by
21 percentage points, and the net volume declines. Unfavorable foreign exchange reduced operating profit
growth by 13 percentage points, including an 8-percentage-point impact from Venezuela. The results of our
Venezuelan businesses positively contributed 9 percentage points to operating profit growth.
Europe Sub-Saharan Africa
% Change
2015 2014 2013 2015 2014
Net revenue $10,510 $13,399 $13,828 (22) (3)
Impact of foreign exchange translation 24 8
Net revenue growth, on a constant currency
basis(a) 25
Operating profit $ 1,081 $ 1,389 $ 1,327 (22) 5
Restructuring and impairment charges 89 71 60
Merger and integration charges —— 10
Operating profit excluding above items(a) $ 1,170 $ 1,460 $ 1,397 (20) 4.5
Impact of foreign exchange translation 22 1
Operating profit growth excluding above
items, on a constant currency basis(a) 2.5 (b) 6(b)
(a) See “Non-GAAP Measures.”
(b) Does not sum due to rounding.
2015
Net revenue decreased 22%, primarily reflecting unfavorable foreign exchange, which negatively impacted
net revenue performance by 24 percentage points, including 13 percentage points from Russia, as well as
net volume declines. These impacts were partially offset by effective net pricing.