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PBG » Topics » Mexico

This excerpt taken from the PBG 8-K filed Sep 16, 2009.
Mexico
In our Mexico segment, operating income decreased 13 percent as a result of declines in base business volume and higher SD&A expenses. Restructuring charges and the impact of acquisitions together contributed a two percentage point impact to the operating income decline for the year.
 
Gross profit per case in Mexico grew five percent versus the prior year due primarily to increases in net revenue per case partially offset by a nine percent increase in cost of sales. Increase in cost of sales reflects cost per case increases resulting from significantly higher sweetener costs and the impact of acquisitions, partially offset by base volume declines.
 
SD&A expenses in Mexico grew eight percent versus the prior year, which includes three percentage points of growth from acquisitions. The remaining growth is driven by higher operating expenses versus the prior year.
 
These excerpts taken from the PBG 10-K filed Feb 20, 2009.
Mexico
In our Mexico segment, volume decreased five percent driven by slower economic growth coupled with pricing actions taken by the Company to drive improved margins across its portfolio. This drove single digit declines in our jug water and multi-serve packages, which was partially offset by one percent improvement in our bottled water package.
 
2007 vs. 2006
 
                                 
          U.S. &
              
    Worldwide     Canada     Europe     Mexico  
Base volume
    – %     – %     4 %     (2 )%
Acquisitions
    1       –       –       3  
                                 
Total Volume Change
    1 %     – %     4 %     1 %
                                 
 
Mexico
In our Mexico segment, overall volume increased one percent, driven primarily by acquisitions, partially offset by a decrease of two percent in base business volume. This decrease was primarily attributable to four percent declines in both CSD and jug water volumes, mitigated by nine percent growth in bottled water and greater than 40 percent growth in non-carbonated beverages.
 
Mexico
In our Mexico segment, net revenues were flat versus the prior year reflecting increases in net price per case offset by declines in volume and the negative impact of foreign currency translation. Growth in net price per case was primarily due to rate increases taken within our multi-serve CSDs, jugs and bottled water packages.
 
2007 vs. 2006
 
                                   
          U.S. &
        
    Worldwide     Canada   Europe   Mexico
2007 Net revenues
  $ 13,591       $ 10,336     $ 1,872     $ 1,383  
2006 Net revenues
  $ 12,730       $ 9,910     $ 1,534     $ 1,286  
% Impact of:
                                 
Volume
    – %       – %     4 %     (2 )%
Net price per case (rate/mix)
    4         4       9       7  
Acquisitions
    1         –       –       3  
Currency translation
    2         –       9       –  
                                   
Total Net Revenues Change
    7 %       4 %     22 %     8 %
                                   
 
Mexico
In our Mexico segment, eight percent growth in net revenues reflected strong increases in net price per case, and the impact of acquisitions, partially offset by declines in base business volume.
 
Mexico





In our Mexico segment, volume decreased five percent driven by
slower economic growth coupled with pricing actions taken by the
Company to drive improved margins across its portfolio. This
drove single digit declines in our jug water and multi-serve
packages, which was partially offset by one percent improvement
in our bottled water package.


 




2007
vs. 2006


 





















































































































































                                 

 

 

 

 

 

U.S. &


 

 

 

 

 

 

 

 

 

Worldwide

 

 

Canada

 

 

Europe

 

 

Mexico

 


Base volume


 

 

–

%

 

 

–

%

 

 

4

%

 

 

(2

)%


Acquisitions


 

 

1

 

 

 

–

 

 

 

–

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total Volume Change


 

 

1

%

 

 

–

%

 

 

4

%

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






 




Mexico
In our Mexico segment, we had an operating loss of $338 million in 2008 driven primarily by impairment and restructuring charges taken in the current and prior years. The remaining one percent decrease in operating income growth for the year was driven by volume declines, partially offset by increases in gross profit per case and the positive impact from foreign currency translation.
 
Gross profit per case improved six percent versus the prior year driven by improvements in net revenue per case, as we continue to improve our segment profitability in our jug water and multi-serve packages. Cost of sales per case in Mexico increased by five percent due primarily to rising packaging costs.
 
SD&A remained flat versus the prior year driven by lower volume and reduced operating costs as we focus on route productivity, partially offset by cost inflation.
 
2007 vs. 2006
 
                                 
          U.S. &
              
    Worldwide     Canada     Europe     Mexico  
2007 Operating income
  $ 1,071     $ 893     $ 106     $ 72  
2006 Operating income
  $ 1,017     $ 878     $ 57     $ 82  
% Impact of:
                               
Operations
    6 %     6 %     41 %     (11 )%
Currency translation
    1       1       11       1  
PR Beverages
    3       –       50       –  
2007 Restructuring
    (3 )     (2 )     (15 )     (4 )
Asset disposal charges
    (2 )     (3 )     –       –  
Acquisitions
    –       –       –       2  
                                 
Total Operating Income Change
    5 %     2 %     86 %*     (13 )%*
                                 
 
* Does not add due to rounding to the whole percentage.
 
Mexico





In our Mexico segment, overall volume increased one percent,
driven primarily by acquisitions, partially offset by a decrease
of two percent in base business volume. This decrease was
primarily attributable to four percent declines in both CSD and
jug water volumes, mitigated by nine percent growth in bottled
water and greater than 40 percent growth in non-carbonated
beverages.


 




Mexico
In our Mexico segment, operating income decreased 13 percent as a result of declines in base business volume and higher SD&A expenses. Restructuring charges and the impact of acquisitions together contributed a two percentage point impact to the operating income decline for the year.
 
Gross profit per case in Mexico grew five percent versus the prior year due primarily to increases in net revenue per case partially offset by a nine percent increase in cost of sales. Increase in cost of sales reflects cost per case increases resulting from significantly higher sweetener costs and the impact of acquisitions, partially offset by base volume declines.
 
SD&A expenses in Mexico grew eight percent versus the prior year, which includes three percentage points of growth from acquisitions. The remaining growth is driven by higher operating expenses versus the prior year.
 
Mexico





In our Mexico segment, net revenues were flat versus the prior
year reflecting increases in net price per case offset by
declines in volume and the negative impact of foreign currency
translation. Growth in net price per case was primarily due to
rate increases taken within our multi-serve CSDs, jugs and
bottled water packages.


 




2007
vs. 2006


 

























































































































































































































































                                   

 

 

 

 

 

U.S. &


 

 

 

 

 

 

Worldwide

 

 

Canada

 

Europe

 

Mexico


2007 Net revenues


 

$

13,591

 

 

 

$

10,336

 

 

$

1,872

 

 

$

1,383

 


2006 Net revenues


 

$

12,730

 

 

 

$

9,910

 

 

$

1,534

 

 

$

1,286

 


% Impact of:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Volume


 

 

–

%

 

 

 

–

%

 

 

4

%

 

 

(2

)%


Net price per case (rate/mix)


 

 

4

 

 

 

 

4

 

 

 

9

 

 

 

7

 


Acquisitions


 

 

1

 

 

 

 

–

 

 

 

–

 

 

 

3

 


Currency translation


 

 

2

 

 

 

 

–

 

 

 

9

 

 

 

–

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total Net Revenues Change


 

 

7

%

 

 

 

4

%

 

 

22

%

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






 




Mexico





In our Mexico segment, eight percent growth in net revenues
reflected strong increases in net price per case, and the impact
of acquisitions, partially offset by declines in base business
volume.


 




Mexico





In our Mexico segment, operating income decreased
13 percent as a result of declines in base business volume
and higher SD&A expenses. Restructuring charges and the
impact of acquisitions together contributed a two percentage
point impact to the operating income decline for the year.


 



Gross profit per case in Mexico grew five percent versus the
prior year due primarily to increases in net revenue per case
partially offset by a nine percent increase in cost of sales.
Increase in cost of sales reflects cost per case increases
resulting from significantly higher sweetener costs and the
impact of acquisitions, partially offset by base volume declines.


 



SD&A expenses in Mexico grew eight percent versus the prior
year, which includes three percentage points of growth from
acquisitions. The remaining growth is driven by higher operating
expenses versus the prior year.


 




EXCERPTS ON THIS PAGE:

8-K
Sep 16, 2009
10-K (11 sections)
Feb 20, 2009

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