Snapple 2011 Annual Report Download - page 12

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At DPS, we are focused on cash generation and
shareholder returns. We’ve been consistent in returning
excess free cash to our shareholders, and expect to
continue to do so in the years ahead. In early 2012, we
announced the fourth increase to our dividend, once again
demonstrating our commitment to grow dividends over
time. Our annual payout is now $1.36 per share, giving
us a strong dividend yield in today’s market. Moreover, in
2010 and 2011, we repurchased $1.6 billion of our stock
and expect to buy back $350 million to $375 million in
2012, subject to market conditions.
A KEY ENABLER BEHIND OUR
ONGOING HEALTHY CASH
FLOW IS OUR ABILITY TO
CONTINUOUSLY IMPROVE .
We operate in developed markets, reducing the need
for costly acquisitions as we work to get the best-tasting
CSDs, premium teas and juices into the hands of more
consumers. Our goal is to grow the business organically,
allowing us to continue to return excess free cash
to shareholders.
Key enablers behind our ongoing healthy cash fl ow are our
continuing investments in our people, brands and systems
to ensure we are positioned to grow profi tably over the long
term, as well as our ability to continuously improve in all
areas. At DPS, we call this rapid continuous improvement,
and it’s a growing capability within our company. RCI
focuses our processes on what is truly value-added to our
customers, eliminating waste and unnecessary activities
and thereby improving productivity.
While we are still in the early stages of our RCI journey,
we’ve made improvements in sales productivity, marketing
and innovation, while reducing costs and inventory, as
well as lowering certain capital requirements. In the
process, we’re freeing up critical resources – people, time
and money – that can be redirected toward building our
brands, growing our business and contributing strong
total shareholder returns.
10
*One-time payments of more than
$1.6 billion from The Coca-Cola Co.
and PepsiCo, Inc. in 2010 helped
fund additional share repurchases.
DIVIDENDS
(ANNUALIZED AMOUNTS)
SHARE REPURCHASES
(IN MILLIONS)
STRONG CASH F
LOW
IS BUILDING
SHAREHOLDER VALUE
‘09–’10 ‘10–’11 ‘11–’12 ’10
$0.60-$1.00
$1.00-$1.28
$1.28-$1.36
$1,113*
’11
$522