Pepsico, Inc. · NASDAQ:PEP
Pepsico — Q3 2009 Earnings Presentation
20 slides from Pepsico's earnings presentation, Oct 8, 2009
Slide 1: 2009 Q3 Earnings Call
2009 Q3 Earnings Call October 8, 2009
Slide 2: Lynn A. Tyson, Investor Relations
Lynn A. Tyson Senior Vice President, Investor Relations PepsiCo, Inc.
Slide 3: Safe Harbor Statement
Safe Harbor Statement Statements in this communication that are “forward-looking statements”, including PepsiCo’s 2009 and 2010 guidance, are based on currently available information, operating plans and projections about future events and trends. They inherently involve risks and uncertainties that
Slide 4: Indra Nooyi, Chairman & CEO
Indra Nooyi Chairman & CEO, PepsiCo, Inc.
Slide 5: PepsiCo's 2009 & 2010 Guidance
PepsiCo’s 2009 & 2010 Guidance • Reaffirming 2009 mid- to high-single-digit, constant currency net revenue and core constant currency EPS growth, off of core 2008 EPS of $3.68 • Set 2010 performance target of 11 to 13 percent core constant currency EPS growth, assuming the closing of the PBG and PAS
Slide 6: PepsiCo Transformation
PepsiCo Transformation • Launched Productivity for Growth initiative • Focused on margin management • Refreshed North American beverage portfolio • Reached agreement on anchor bottler acquisitions • Continued to execute tuck-in acquisitions • Executed generational management transitions and refreshe
Slide 7: Third Quarter 2009
Third Quarter 2009 • Constant currency net revenue grew 5 percent • Core constant currency division operating profit grew 8 percent • Core constant currency EPS grew 8 percent
Slide 8: $ PEPSICO
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Slide 9: 2010: A Year to Reinvest
2010: A Year to Reinvest • Key areas for investment will include: – R&D to create products that feature true, science- based differentiation – Expanding our businesses in key emerging markets – Increased support behind a few, large global brands – SAP and IT infrastructure – Continue to invest in Pe
Slide 10: Richard Goodman, Chief Financial Officer
Richard Goodman Chief Financial Officer, PepsiCo, Inc.
Slide 11: Third Quarter Focus Areas
Third Quarter Focus Areas • Invested in value for our consumers • Leveraged PepsiCo’s agile Go-to Market system to adapt quickly to changes in the environment • Continued to drive consumer-preferred innovation • Exercised financial discipline and maintained a laser focus on productivity
Slide 12: Third Quarter and 2009 YTD
Third Quarter and 2009 YTD • Constant currency net revenue grew 5 percent in Q3 and YTD • Core constant currency division operating profit grew 8 percent in Q3 and 7 percent YTD • Core constant currency EPS grew 8 percent in Q3 and YTD • Both overall gross margin and division operating margin grew i
Slide 13: PepsiCo Americas Foods
PepsiCo Americas Foods • PAF increased share in virtually every market and grew key long-term platforms outside of its core portfolio • FLNA grew volume share off an already large base; delivered differentiated value to narrow price gaps significantly to competitors; and implemented targeted pricing
Slide 14: PepsiCo Americas Beverages
PepsiCo Americas Beverages • Category dynamics continued to impact performance • Highlights in the quarter include: – CSD portfolio achieved number one volume and value share position in U.S. measured channels – Enhanced water portfolio gained share, reflecting high double-digit volume gains in SoBe
Slide 15: PepsiCo International
PepsiCo International • Another quarter of solid performance from PI, despite challenging macroeconomic environment – Double-digit constant currency net revenue and core constant currency operating profit growth across both Europe and AMEA • Europe teams managed well through challenging macro condit
Slide 16: Below the Line Items
Below the Line Items • Core EPS of $1.08 – Included 24.7 percent tax rate – Primarily reflected favorable resolution of foreign tax matters – Expect full-year tax rate to be about 26 percent • Continued to generate strong management operating cash flow – $4.1 billion year-to-date, excluding certain
Slide 17: 2009 & 2010 Full-Year Guidance
2009 & 2010 Full-Year Guidance • Reaffirming 2009 guidance of mid- to high-single-digit, constant currency net revenue and core constant currency EPS growth, off of core 2008 EPS of $3.68 – Foreign exchange, at current spot rates, would represent roughly a mid- single-digit headwind to full-year cor
Slide 18: PEPSICO
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Slide 19: Indra Nooyi, Chairman & CEO
Indra Nooyi Chairman & CEO, PepsiCo, Inc.
Slide 20: $ PEPSICO
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