USA: DBRS Releases Benchmark Report on Quaker Oats, PepsiCo and Coca-Cola
The Quaker Oats Company The Quaker Oats Company ("Quaker") is the leader in sports drinks globally, the fourth largest global cereal company, and it also has a sizeable convenience food business. Operations exhibit the following strengths: (1) The brand portfolio is strong, if not overly deep, with over 80% of sales in categories where it holds leading market shares. Quaker has had good success with recent product introductions. (2) Quaker has divested a number of its less profitable divisions to focus on its core areas, causing sales to fall to about $5.0 billion, even as EBITDA levels have improved to the $800-$900 million range. Profitability is strong compared to peers and trending up, with EBITDA margin in the 17%-19% range and ROC above 30%. (3) Diversification by product category is strong and lends stability to results. The U.S. food area is the largest division with close to 60% of sales and slightly larger portion of operating profits, with Gatorade contributing the remainder. (4) Recent restructuring charges have improved productivity, including the F2000 charge that is estimated to save about $70 million by 2002. (5) The balance sheet should remain above average with good coverage ratios as cash flow is strong (now in the $600 million range) and should fund internal needs over the near future.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-drinks gives you the widest beverage market coverage.
Paid just-drinks members have unlimited access to all our exclusive content - including 14 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Olly Wehring, editor of just-drinks
- PepsiCo to consider more re-franchising - CEO
- Cleaning China's seedier side brings Remy balance
- Focus - SABMiller's Q1 Performance by Region
- Brazil could have been worse - Coca-Cola Co CEO
- just Five Years Ago: A-B InBev sells Oriental
- Diageo's Captain Morgan Facebook ad banned
- Diageo faces public consultation over W&M sale
- William Grant silent on Drambuie bid talk
- Bacardi to fight US football team legal action
- Alcohol retailer group appoints new chairman