PepsiAmericas today reported a drop in full-year profits, impacted by significant foreign currency movements.
For the 12 months to the end of December, net income amounted to US$181.2m, a drop of $27.8m on the previous year, PepsiAmericas said today (12 February).
Reported sales fell 10% to $4.4bn, while comparable currency sales were 1% lower as a result of volume declines in both the US and Central and Eastern Europe (CCE), partially offset by strong pricing across all geographies.
Operating income also decreased, by $92.3m to $380.9m. Strong global pricing and controlled costs, however, drove operating income up 14% on a comparable currency neutral basis.
Chairman and CEO Robert Pohlad said: “We began 2009 with a pragmatic view of the challenges and took actions to help mitigate the impacts. Importantly, we also continued to invest in capability and capacity to strengthen our position across our markets.
“We maintained good focus on working capital management to deliver cash flow of over $240m, ahead of our expectations. Our full year results were impacted by significant currency headwinds, as well as global topline pressures that accelerated in the fourth quarter. To help offset these challenges, global productivity efforts drove over $40m in cost savings while improving our operational and selling capabilities.”

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By GlobalDataCEE volume sales declined 12.8%, reflecting continued difficult economic conditions in the company’s emerging markets, particularly impacting its third-party distributor business in Romania and its export business in Ukraine. US volumes declined 3.6%, reflecting a 10% decline in non-carbonated beverages, while carbonated soft drinks declined 2%.