Summary
PepsiCo, Inc. (PEP) announced its unaudited fiscal 2009 fourth quarter and full-year financial results in an 8-K filing on February 11, 2010. For the full fiscal year 2009, the company reported net revenue of $43.2 billion, operating profit of $8.0 billion, and earnings per share of $3.77. The company also provided an update on its proposed acquisitions of The Pepsi Bottling Group, Inc. and PepsiAmericas, Inc., indicating an expected closing by the end of February 2010. Significant for investors, PepsiCo detailed its integration planning for these acquisitions, targeting approximately $400 million in pre-tax annualized synergies by 2012, with one-time costs estimated to be similar. Synergies anticipated for 2010 are between $125 million and $150 million. The company also indicated plans to resume share repurchases upon the close of the acquisitions, with total capital return in 2010, including a $600 million pension contribution, expected to be around $5 billion.
Key Highlights
- 1Reported full-year 2009 net revenue of $43.2 billion, operating profit of $8.0 billion, and EPS of $3.77.
- 2Announced Q4 2009 net revenue of $13.3 billion, operating profit of $2.0 billion, and EPS of $0.90.
- 3Expected to close proposed acquisitions of The Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) by the end of February 2010.
- 4Targeting approximately $400 million in pre-tax annualized synergies from bottler acquisitions by 2012, with similar one-time costs.
- 5Projecting $125 million to $150 million in synergies to be realized in 2010.
- 6Plans to resume share repurchases upon acquisition closing.
- 7Anticipates total capital return in 2010 (share repurchases and $600 million pension contribution) of approximately $5 billion.