The company reported a $162m net income, including a net after-tax charge of $338m, from restructuring initiatives and other charges related to activities in Mexico.
Net income for the full year was $500m compared to $532m in 2007, a decrease of more than 6%. The company reported a net loss of $271m in the last quarter of 2008.
PBG chairman and CEO, Eric Foss, said that despite the challenging business conditions facing the company, it continued to perform well through a combination of cost management and marketing initiatives.
The PBG CEO was optimistic about the future, though he acknowledged that 2009 would be a difficult year: “There are many opportunities for future growth in the liquid refreshment beverage category, and we remain committed to capitalising on them. This focus on the future, combined with the steps we’re taking to navigate through the present challenges, gives us confidence in PBG’s long-term outlook,” he said.
A confidently buoyant tone permeated the delivery of the results despite the fact that, in the last year, the company has seen a 4% decline in physical case volumes worldwide.
In the fourth quarter, total worldwide case volume declined by 7% as a result of the continued deceleration in consumer spending as a result of the global economic slowdown.
Reported worldwide operating income for the year decreased 39% due to the restructuring programme initiated in late 2008 (‘Structured to Succeed’) as a countermeasure to the economic slowdown. Operating free cash flow for 2008 was $526m.
For the fourth quarter, the company reported an operating loss of $264m. This was driven by a pre-tax charge of $495m related to restructuring actions and investments made to the company’s business in Mexico.
In 2009, PBG expects to achieve currency neutral top-line growth in the low-single digits. Operating free cash flow is expected to be approximately $450m including increased pension funding and foreign currency headwinds. The company anticipates capital expenditures of about $550m to $600m.
The company will focus on new product developments such as incorporating the zero-calorie sweetener Stevia into more products. It will also continue to build on strong execution of point-of-sale, and drive forward with its rebranding campaign, which included the design of a new Pepsi logo in October 2008.
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