Pepsi Bottling Group posts fourth quarter profits
February 2, 2010
The Pepsi Bottling Group Inc., Somers, N.Y., today announced a profit for its fiscal fourth quarter. PBG, which is being purchased by PepsiCo, reported net income of $90 million in the quarter. Worldwide revenue was flat in the latest quarter, and worldwide net revenue per case increased three percent. Total worldwide case volume declined three percent in the quarter.
The bottler also reported a net income of $612 million for its 2009 full-year results. For the full-year 2009, PBG’s revenue decreased four percent to $13.22 billion from $13.8 billion. Net revenue per case declined one percent, with two percent growth in the United States and Canada and double-digit declines in Europe and Mexico.
Total worldwide case volume declined three percent for the full year, the company reported. Volume declined two percent in the United States and Canada, four percent in Mexico and eight percent in Europe, where the macroeconomic challenges were more acute, the company said.
“At the beginning of 2009, we expressed optimism that PBG would continue to perform well in the marketplace despite ongoing macroeconomic challenges,” said PBG Chairman and Chief Executive Officer Eric Foss, in a statement. “Our ability to achieve our full year targets demonstrates that our optimism was justified, as we executed our game plan effectively and delivered a strong set of financial results.”
“Progress in several key areas helped contribute to our success throughout the year,” Foss added. “We continued to strengthen our brand portfolio. We maintained a relentless focus on operational excellence. And we enhanced our geographic portfolio in the U.S. and abroad. I’m proud of our employees, each of whom played a role in achieving our results, and I remain very optimistic about the future of the Pepsi system.”
PBG also announced plans to acquire northern California-based Pepsi-Cola Bottling Co. of Yuba City Inc. The purchase of Pepsi-Cola Bottling Co. of Yuba City Inc. is the sixth in a series of deals that PBG has announced since the beginning of 2008 to expand the company’s footprint in the United States.
The Yuba City bottler has been owned by the Cary family since 1944 when John Cary Sr. purchased the Pepsi-Cola franchise. Currently, John Cary II serves as the company’s president.
“Acquiring well-run independent bottlers continues to be an important part of our strategy to capitalize on geographic growth opportunities,” Foss said, in a statement. “The Cary family has operated a terrific company for more than six decades. Their business, as well as their talented employees, will strengthen our organization. We look forward to building on their commitment to customer service and community involvement in the years to come.”
The company expects the transaction, the financial terms of which were not disclosed, to be completed during the second quarter of 2010.