Focus - PepsiCo's FY Performance By Region
PepsiCo released its full-year and Q4 results earlier today
Earlier today, PepsiCo reported a 3% slip in full-year group net profits as sales were flat. Here, we take a closer look at the firm's beverages performance globally:
- PepsiCo Americas Beverages
The company's only division that deals solely with beverages saw full-year reported sales come in flat. The unit's 2014 operating profits on a constant-currency basis rose by 4%, “reflecting effective net pricing, productivity gains, and lower commodity costs, partially offset by operating cost inflation”.
Fourth-quarter sales, on a reported basis, were up by 1%. In North America, Q4 non-carbonated beverage volumes rose by 4%, while CSD volumes slipped 2%, the company said. In Latin America, beverage volumes in the quarter climbed 3% on the prior year.
The company's full-year net sales, on a reported basis, declined 3% in the region for beverages and snacks combined. Operating profits on a constant-currency basis grew by 4%, which reflected “organic revenue growth and productivity savings, as well as a gain related to the sale of agricultural assets and the lapping of incremental investments in the prior year”, PepsiCo said.
Full-year beverage volumes in the region rose by 1%, compared to 2% growth for snacks.
In Q4, net reported sales slipped 10%, with the company blaming currency exchange movements. Profits on a constant-currency basis fell 5% in the quarter, with operating and cost inflation blamed. Beverage volumes rose by 3% in the period.
- Asia, Middle East and Africa
Full-year net reported sales climbed 3% for beverages and snacks combined. Operating profits in calendar-2014 fell 8% due to “operating cost inflation, charges associated with efficiency initiatives and the lapping of a gain related to the Vietnam beverage business refranchising”, the company said. Beverage volumes grew 2%.
In Q4, reported net sales rose by 4%, while operating profits fell 6%. Beverage volumes grew by 1.5% in the year's final quarter.
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