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Table of Contents
67
Asia, Middle East and North Africa
% Change
2015 2014 2013 2015 2014
Net revenue $ 6,375 $ 6,618 $ 6,431 (4) 3
Impact of foreign exchange translation 53
Net revenue growth, on a constant currency
basis(a) 16
Operating profit $ 941 $ 985 $ 1,140 (4.5) (14)
Restructuring and impairment charges 30 37 26
Charge related to the transaction with Tingyi 73 ——
Operating profit excluding above items(a) $ 1,044 $ 1,022 $ 1,166 2 (12)
Impact of foreign exchange translation 32
Operating profit growth excluding above items, on a
constant currency basis(a) 5(10)
(a) See “Non-GAAP Measures.”
2015
Net revenue declined 4%, reflecting the impact of refranchising a portion of our beverage businesses in India
and the Middle East, which negatively impacted net revenue performance by 3 percentage points. These
impacts were offset by volume growth and effective net pricing. Unfavorable foreign exchange negatively
impacted net revenue performance by 5 percentage points.
Snacks volume grew 4%, reflecting double-digit growth in China and Pakistan and mid-single-digit growth
in the Middle East, partially offset by a high-single-digit decline in Thailand. Additionally, India volume was
flat and Australia experienced low-single-digit growth.
Beverage volume grew 1%, driven by double-digit growth in Pakistan and mid-single-digit growth in the
Middle East and Philippines, partially offset by high-single-digit declines in China and India.
Operating profit decreased 4.5%. Excluding the items affecting comparability in the above table (see “Items
Affecting Comparability”), operating profit increased 2%, primarily reflecting the volume growth, planned
cost reductions across a number of expense categories and the effective net pricing. In addition, lower
commodity costs positively contributed 6 percentage points to reported operating profit performance. These
impacts were partially offset by certain operating cost increases, including strategic initiatives, and higher
advertising and marketing expenses, as well as an impairment charge associated with a joint venture in the
Middle East, which negatively impacted reported operating profit performance by 3 percentage points. The
net impact of the refranchising of a portion of our beverage businesses in India and the Middle East had a
slight positive impact on reported operating profit performance. This impact included a 4-percentage-point
gain from the India refranchising, partially offset by a 1.5-percentage-point impact from lapping the prior
year gain from the Middle East refranchising. Unfavorable foreign exchange negatively impacted operating
profit performance by 3 percentage points.
2014
Net revenue grew 3%, reflecting volume growth and 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.