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.