just The Preview - PepsiCo Q4 & FY
PepsiCo will report its full-year results on 9 February
PepsiCo is set to release its Q4 and full-year results on Thursday (9 February). Below, we take a look at the highs and lows for the company in the three months to the beginning of December.
- At the start of PepsiCo's final quarter, in early-September, the company's CFO warned that price increases in developed markets will only get the company so far. “While our brands are solid and our company is highly productive, … stagflation has made pricing a tricky balancing act.” said Hugh Johnston at the Barclays 'Back to School' conference. “The outlook has been degrading over the last six months and it's now clear the developed markets have little growth."
- In mid-September, PepsiCo completed its purchase of Russian juice and dairy company Wimm-Bill-Dann. The acquisition process started in December 2010.
- Towards the end of the month, the company created 'Power of One - Americas Council', an in-house body designed to take advantage of the combined scale of PepsiCo's food and beverage businesses in the US. “Our new … Council will help us to better coordinate our manufacturing, sales and distribution activities and align our retail and consumer brand promotions across our portfolio, which will result in greater operating efficiency, speed to market and value,” said company chairman & CEO, Indra Nooyi.
- PepsiCo's CEO highlighted the importance of up-and-coming markets in early-November. Speaking in India, Nooyi said that emerging markets will account for at least half of the company's global sales within the next five years. BRIC economies currently account for around 40% of PepsiCo's global revenues.
- Speaking of emerging markets, the company offloaded its bottling operations in China in November, to Tingyi (Cayman Islands) Holding Corp. The transaction saw PepsiCo take a 5% stake in the noodle and soft drinks maker's business in return for the transfer of its indirect equity interests in 24 company-owned and joint venture bottling operations in the country. PepsiCo retained the branding and marketing responsibilities in China.
- A report in the New York Post in November, turned the spotlight squarely on Indra Nooyi's leadership of PepsiCo. With no obvious successor waiting in the wings, and claims that the firm was guilty of a number of "marketing missteps", all did not look well in PepsiCo's house. Then, a day later, the firm said it had extended the deadline of its business review, which, when published, will include guidance for 2012.
- The rumour-mill went into overdrive a week later when investor Nelson Peltz, who has a reputation for pushing for company break-ups, was confirmed to have bought 2.36m shares in PepsiCo at the end of September. Although Peltz's investment vehicle, Trian Fund Management, was reported to have sold off its shares a few days later, reports in mid-November claimed that some members of PepsiCo's board want to take a closer look at splitting the snack and beverage units, a move that group CEO Indra Nooyi was thought to be against.
- Nooyi found a supporter in the editor of our sister site just-food, Dean Best, who argued in late-November that the company's shareholders should focus more on the long-game than target short-term gains.
Much as the speculation surrounding the company has died down since November, could PepsiCo be planning a big announcement to calm its shareholders later this week?
For information on PepsiCo's share price, click here.
For PepsiCo's Q3 results, announced in October, click here.
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