Summary
PepsiCo, Inc. (PEP) released an 8-K filing on March 30, 2011, providing an update on its 2011 financial outlook and reiterating its long-term growth expectations. The company affirmed its forecast for 2011 core constant currency Earnings Per Share (EPS) growth of 7-8% from a fiscal 2010 core EPS of $4.13. Looking beyond 2011, PepsiCo anticipates continued high-single-digit core constant currency EPS growth. This guidance excludes the impact of a 53rd week in fiscal 2011, commodity mark-to-market fluctuations, and merger/integration charges. The company also provided guidance on net revenue growth. For fiscal 2011, PepsiCo expects organic net revenue growth, on a 52-week, core constant currency basis and excluding the Wimm-Bill-Dann Foods acquisition, to be in line with its mid-single-digit long-term goal. This is based on fiscal 2010 pro forma net revenue of $59.6 billion, which includes the impacts of the previously completed acquisitions of The Pepsi Bottling Group, Inc. and PepsiAmericas, Inc. Investors should note that the company utilizes "core" and "constant currency" metrics, which are non-GAAP measures designed to provide a clearer view of ongoing operational performance.
Key Highlights
- 1PepsiCo reaffirms 2011 core constant currency EPS growth target of 7-8%, building on $4.13 in fiscal 2010.
- 2Long-term outlook projects sustained high-single-digit core constant currency EPS growth.
- 3Fiscal 2011 organic net revenue growth expected to be in line with mid-single-digit long-term goal.
- 4Guidance excludes the impact of a 53rd week in fiscal 2011, commodity mark-to-market adjustments, and merger/integration charges.
- 5Fiscal 2010 pro forma net revenue was $59.6 billion, reflecting prior acquisitions of PBG and PepsiAmericas.
- 6The Wimm-Bill-Dann Foods acquisition is excluded from 2011 net revenue growth expectations.
- 7Company emphasizes "core" and "constant currency" metrics for evaluating ongoing operational performance.