US: Central Europe, acquisitions drive PepsiAmericas FY
PepsiAmericas has unveiled a strong set of results for 2007.
The PepsiCo manufacturer, seller and distributor said today (30 January) that net income for the full-year hit US$212.1m, up from $158.3m in 2006, with operating income up to $436.1m from $356m. The profit rises were driven by increased sales in the year, up by 13% to $4.48bn.
Sales were driven by acquisitions, foreign currency translation and net pricing gains and volume growth in Central Europe.
In the third quarter of 2006, the company acquired the remaining interest in QABCL, its Romanian bottler. Additionally, in the third quarter of 2007, PepsiAmericas completed the acquisition, with PepsiCo, of an 80% stake in Sandora, the leading juice company in Ukraine.
"Central Europe continues to be our strongest contributor," said company chairman and CEO, Robert Pohlad. "Along with acquisitions and foreign currency benefits, our Central European business delivered operating profits over $100m, over four times that of the prior year.
"Our US business delivered operating profits of over $330m, and while down modestly from last year, it continues to generate strong cash flow. The combination of these markets, the stability in the US and the growth in Europe, drove our strong results."
For the final quarter of 2007, net income climbed to $42m from $26.1m in the corresponding period a year earlier, with operating income up to $92.5m from $75.8m. Sales were up by 14% to $1.14bn.
The company noted that volumes in the quarter slid by 0.6%, with CSD volumes down more markedly by 2%. Non CSD volumes, however, registered a 12% rise, driven by the company's Lipton tea business and "the successful execution of the hydration and energy strategies".
PepsiAmericas said it is targeting full year reported EPS to be in the range of $1.77 to $1.83 in 2008, an increase on last year's $1.64 EPS.
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