8-KRegulation FD

PEPSICO INC 8-K Report, Regulation FD Disclosure (Feb 24, 2011)

Filed February 24, 2011For Securities:PEP

Summary

PepsiCo, Inc. (PEP) held a conference call on February 23, 2011, to reiterate its financial outlook. The company expects 2011 core constant currency earnings per share (EPS) growth of 7-8% over its fiscal 2010 core EPS of $4.13. Looking beyond 2011, PepsiCo anticipates continued high-single-digit core constant currency EPS growth. Additionally, the company projects fiscal 2011 organic net revenue growth to be in line with its long-term mid-single-digit goal, excluding the impact of the Wimm-Bill-Dann Foods OJSC acquisition but including the pro forma impact of the Pepsi Bottling Group and PepsiAmericas acquisitions from 2010. The report also provides a detailed breakdown of "core" non-GAAP financial measures, excluding items such as merger and integration charges, commodity mark-to-market impacts, and the effect of a 53rd week in 2011, to offer a clearer view of ongoing operational performance.

Key Highlights

  • 1PepsiCo reiterates its 2011 core constant currency EPS growth target of 7-8% on a $4.13 base.
  • 2The company projects sustained high-single-digit core constant currency EPS growth beyond 2011.
  • 3Fiscal 2011 organic net revenue growth is expected to be in line with the long-term mid-single-digit goal.
  • 4The outlook excludes the impact of the Wimm-Bill-Dann Foods OJSC acquisition but includes pro forma 2010 acquisitions (PBG, PAS).
  • 5The report clarifies the use of 'core' non-GAAP measures to present underlying business performance, excluding significant one-time items.
  • 6Key exclusions from core results include merger/integration charges, commodity hedging impacts, and the 53rd week in 2011.

Frequently Asked Questions

PepsiCo expects its core constant currency earnings per share (EPS) to grow by 7-8% in fiscal 2011. This growth is projected from its fiscal 2010 core EPS of $4.13.

Beyond 2011, PepsiCo anticipates continued high-single-digit core constant currency EPS growth.

PepsiCo's 'core' results are non-GAAP measures that exclude certain items to provide a clearer picture of ongoing operational performance. These exclusions include significant items like merger and integration charges, commodity mark-to-market impacts, and the effect of a 53rd week in the fiscal year. Investors are encouraged to consider these measures as they are believed to be more indicative of the company's underlying business trends and how management evaluates results.

For 2011 guidance, 'core' results exclude the commodity mark-to-market net impact, merger and integration charges related to acquisitions (PBG, PAS, WBD), and the impact of the 53rd week in 2011. For net revenue growth, it excludes the Wimm-Bill-Dann Foods OJSC acquisition but includes the pro forma impact of PBG and PAS acquisitions from 2010.