Pepsi 2015 Annual Report Download - page 83

Table of Contents
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Snacks volume grew 1%, primarily reflecting mid-single-digit growth in Turkey and Spain, and low-single-
digit growth in the United Kingdom, South Africa and the Netherlands, partially offset by a mid-single-digit
decline in Russia.
Beverage volume declined 2%, primarily reflecting a double-digit decline in Russia, partially offset by mid-
single-digit growth in Nigeria and low-single-digit growth in Turkey and the United Kingdom. Additionally,
Germany experienced a slight decline.
Operating profit decreased 22%, reflecting higher commodity costs, which negatively impacted operating
profit performance by 24 percentage points, primarily from transaction-related foreign exchange.
Additionally, operating profit performance was negatively impacted by certain operating cost increases, the
net volume declines and higher advertising and marketing expenses, as well as the lapping of a prior-year
gain associated with the sale of agricultural assets in Russia, which negatively impacted operating profit
performance by 2 percentage points. These impacts were partially offset by the effective net pricing and
planned cost reductions across a number of expense categories, as well as lower charges in the current year
associated with productivity initiatives outside the scope of the 2014 and 2012 Productivity Plans, which
positively impacted operating profit performance by 1.5 percentage points. In addition, the net impact of a
prior-year impairment charge associated with a brand in Greece positively contributed 1 percentage point to
operating profit performance. Unfavorable foreign exchange translation negatively impacted operating profit
performance by 22 percentage points.
See Note 3 to our consolidated financial statements for additional information on “Other Productivity
Initiatives.”
2014
Net revenue decreased 3%, primarily reflecting unfavorable foreign exchange, which negatively impacted
net revenue performance by 8 percentage points, partially offset by effective net pricing and volume growth.
Snacks volume grew 2%, primarily reflecting high-single-digit growth in South Africa and mid-single-digit
growth in Turkey, partially offset by a slight decline in Russia. Additionally, the Netherlands experienced
slight growth and the United Kingdom grew low-single digits.
Beverage volume grew 2%, primarily reflecting double-digit growth in Nigeria and mid-single-digit growth
in Germany, partially offset by a mid-single-digit decline in Russia. Additionally, the United Kingdom and
Turkey experienced low-single-digit growth.
Operating profit increased 5%, primarily reflecting the effective net pricing, planned cost reductions across
a number of expense categories and the volume growth. These impacts were partially offset by certain
operating cost increases, including strategic initiatives, and higher commodity costs, primarily reflecting
milk prices and foreign exchange transaction losses, which reduced operating profit growth by 21 percentage
points. The impacts of lapping incremental investments into our business in the prior year and the gain
associated with the sale of agricultural assets in Russia contributed 3 percentage points and 2 percentage
points to operating profit growth, respectively. These impacts were partially offset by the impairment charge
associated with a brand in Greece and charges associated with productivity initiatives outside the scope of
the 2014 and 2012 Productivity Plans, each of which reduced operating profit growth by 2 percentage points.