This excerpt taken from the PBG 8-K filed Feb 2, 2010.
Full-Year 2009 Financial Highlights
On a currency neutral basis, revenue increased one percent in 2009.
The Company’s revenue performance reflects solid execution of our
revenue and margin management strategy in a challenging macroeconomic
environment. Reported revenue decreased four percent.
Net revenue per case improved four percent on a currency neutral basis
in 2009. This includes currency neutral net revenue per case growth of
three percent in the U.S. and Canada, seven percent in Europe and six
percent in Mexico. On a reported basis, net revenue per case declined
one percent, with two percent growth in the U.S. and Canada segment
and double-digit declines in Europe and Mexico.
Total worldwide physical case volume declined three percent for the
full year, consistent with the Company’s expectations. Volume declined
two percent in the U.S. and Canada segment, four percent in Mexico and
eight percent in Europe, where the macroeconomic challenges were more
Worldwide operating income was flat on a comparable currency neutral
basis, which includes a 10 percentage point negative impact from
transactional foreign currency headwinds and a three percentage point
positive impact from acquisitions. Comparable currency neutral
operating income declined two percent in the U.S. and Canada segment,
while Europe grew two percent and Mexico was up double-digits.
worldwide operating income grew 61 percent, with a two percent decline
in the U.S. and Canada segment offset by growth in Europe and Mexico.
The Company achieved approximately $350 million in cost savings and
productivity improvements, exceeding expectations. This reflects
successful initiatives to optimize manufacturing costs, transform
warehouse operations, and maximize go-to-market effectiveness. PBG’s
comparable currency neutral SD&A expenses improved two percent, or
seven percent on a reported basis.
COGS per case increased six percent on a comparable, currency neutral
basis for the year, which includes 1.5 points of transactional foreign
exchange impact. Reported COGS per case increased one percent.
PBG benefited from a lower comparable effective tax rate of 18.1
percent in 2009, versus a tax rate of 29.7 percent in the prior year.
The lower effective tax rate was driven by a favorable earnings mix,
lower interest charges on tax reserves due to settlements, and tax
planning initiatives. The tax rate also benefited from the reversal of
valuation allowances on certain international deferred tax assets, the
majority of which were not included in our previous guidance. The
Company’s reported effective tax rate for 2009 was 5.7 percent,
reflecting the above plus a net positive benefit from tax audit
settlements that were partially offset by a tax law change in Mexico.
This compares to a 33.4 percent reported effective tax rate in 2008.
Operating free cash flow for 2009 was $578 million, excluding advisory
fees related to the pending PepsiCo transaction, which reflects the
Company’s disciplined approach to capital spending and working capital
management as well as its lower cash tax rate. The operating free cash
flow number includes $229 million in pension funding and $62 million
in one-time pre-tax restructuring charges.
Bet you've never seen portfolio analytics like these.