In the fourth quarter, the company delivered a 3% increase in net revenue, with foreign exchange adversely impacting net revenue growth in the quarter by 5.5%.
Indra Nooyi, PepsiCo chairwoman and CEO, said: “PepsiCo’s operating agility and disciplined execution delivered solid results in an extremely difficult year. We expect 2009 will present a challenging environment. However, I’m confident that we have robust plans and an experienced team in place to navigate capably through the turbulent environment.
“More importantly, we’re well positioned to manage our business to deliver short-term results while also driving long-term sustainable growth.”
PepsiCo Americas Beverages navigated a challenging year in the US, as the liquid refreshment category declined for the first time on a year-over-year basis. PAB volume declined 3% for the year.
In the fourth quarter, volume declined 6% and net revenue declined 10% partly due to the lapping of the launch of G2 and SoBe Lifewater in the year-ago period.
Core operating profit declined 16%, largely due to softer volume and higher input costs. Foreign exchange adversely impacted net revenue and core operating profit growth by two percentage points and 3.5 percentage points, respectively.
At the end of the fourth quarter, PAB started the roll-out of a revitalised beverage portfolio into the North American market. PAB’s portfolio features new brand identities for trademarks Gatorade, Pepsi, Sierra Mist and Mountain Dew, as well as key product innovations such as a new formulation of SoBe Lifewater, sweetened with PureVia, an all-natural, zero-calorie sweetener recently approved by the FDA.
Source: PepsiCo
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