8-KRegulation FD

PEPSICO INC 8-K Report, Regulation FD Disclosure (Sep 4, 2013)

Filed September 4, 2013For Securities:PEP

Summary

PepsiCo, Inc. (PEP) filed an 8-K on September 4, 2013, providing forward-looking guidance in advance of the Barclays Back-to-School Consumer Conference. The company reiterated its expectation for 2013 core constant currency Earnings Per Share (EPS) growth of 7%, based on its fiscal 2012 core EPS of $4.10. Management indicated that foreign exchange translation is anticipated to negatively impact full-year core EPS by at least 2 percentage points, a key consideration for investors. Furthermore, PepsiCo expects organic revenue for 2013 to grow in the mid-single digits, consistent with its long-term outlook. This guidance excludes the impact of structural changes, such as beverage refranchisings, which are expected to reduce net revenue growth by approximately 1%, and foreign exchange translation, projected to have an unfavorable impact of about 2 percentage points on net revenue. The company also confirmed that President Zein Abdalla would be presenting at the conference, with materials available on their investor relations website.

Key Highlights

  • 1Reiterated 2013 core constant currency EPS growth guidance of 7% (based on $4.10 in FY12).
  • 2Anticipates an unfavorable foreign exchange impact of at least 2 percentage points on full-year 2013 core EPS.
  • 3Expects 2013 organic revenue growth in the mid-single digits, consistent with long-term guidance.
  • 4Structural changes, primarily beverage refranchisings, are expected to reduce net revenue growth by approximately 1%.
  • 5Foreign exchange translation is projected to negatively impact full-year net revenue growth by approximately 2%.
  • 6President Zein Abdalla scheduled to present at the Barclays Back-to-School Consumer Conference on September 4, 2013.
  • 7Presentation webcast and replay will be available on PepsiCo's investor relations website.

Frequently Asked Questions

PepsiCo reiterated its guidance for 2013, expecting core constant currency EPS growth of 7%. This is based on a fiscal 2012 core EPS of $4.10. Investors should note that foreign exchange translation is expected to be a headwind, negatively impacting full-year core EPS by at least 2 percentage points.

The company expects organic revenue to grow in the mid-single digits for 2013. However, structural changes, notably beverage refranchisings, are estimated to reduce net revenue growth by about 1%. Additionally, foreign exchange translation is projected to have an unfavorable impact of approximately 2 percentage points on full-year net revenue growth.

PepsiCo announced that President Zein Abdalla would present at the Barclays Back-to-School Consumer Conference on September 4, 2013. A live audio webcast and replay of the presentation, including accompanying slides, will be accessible on PepsiCo's website (www.pepsico.com) in the 'Investors' section under 'Events and Presentations'.

'Core constant currency EPS' is a non-GAAP financial measure used by PepsiCo. 'Core' results exclude certain items like commodity mark-to-market impacts, merger and integration charges, and restructuring charges. 'Constant currency' means that financial results are presented assuming constant foreign currency exchange rates from the prior-year period, effectively removing the impact of currency fluctuations on year-over-year comparisons.