This includes a net after-tax gain of $39m, or $0.18 per share, as a result of a benefit from the settlement of tax audits, previously announced restructuring charges and advisory fees relating to PepsiCo’s proposal to acquire PBG. This compares to net income of $174m, or $0.78 per diluted share, that the company reported in the second quarter of 2008.
“PBG delivered a strong set of results during the second quarter,” said PBG chairman and CEO, Eric Foss. “Our ability to execute an effective global pricing strategy, achieve robust cost and productivity savings, and deliver solid execution at the point of sale has fuelled our success through the first half of 2009. We’re also benefiting from improved carbonated soft drink trends in the US, as well as encouraging developments in the commodity and foreign currency markets.
“All of this has driven our performance above expectations for two consecutive quarters despite the challenging macro-economic environment, and we have a positive outlook for the remainder of this year and beyond.
“As we look towards the future, we continue to focus on our three strategic priorities for growth. We’ll strengthen and reposition our brand portfolio, transform our performance through operational excellence, and pursue geographic growth opportunities. We believe that our work in these three areas will unlock significant new growth opportunities and position us well for long-term success.”
On a reported basis, worldwide revenue decreased 7%. Worldwide revenue was flat on a currency neutral basis in the second quarter. The company’s revenue performance reflects solid currency neutral net revenue per case gains offset by softer volume due to macro-economic pressure.
Reported COGS per case were flat in the second quarter. Currency neutral COGS per case increased 8%, consistent with the company’s expectations.
On a reported basis, PBG’s SD&A expenses declined 10% in the second quarter. Restructuring charges and advisory fees increased reported SD&A by two percentage points. Reported SD&A in the US and Canada segment declined 2%. Comparable worldwide SD&A expenses improved 4% on a currency neutral basis, reflecting the success of the company’s global productivity initiatives.
Source: The Pepsi Bottling Group
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