Pepsico international презентация

December 6, 2011

PepsiCo, Inc. NYSE:PEP

in 1919.

The Company's brands include Quaker Oats, Tropicana, Gatorade, Lay's, Pepsi, Walkers, Gamesa and Sabritas.

Market capitalisation: $100.68bn

Approximately around 294,000 employees worldwide.

December 5th 2011 closing price: $64.40

52-week range: $58.50-$71.89

Introduction

line – PepsiCo
Green – S&P 500 index

Yahoo Finance

time horizon

horizon

September, 2011, Financial Times

from 2011 to 2016

http://clients.ibisworld.com/bed/default.aspx?bedid=363http://clients.ibisworld.com/bed/default.aspx?bedid=363 Image: http://clients.ibisworld.com/charts/bed/1_1_363_BEDScores.png

suffering recently with an annual 7.1% decline from 2006 to 2011
Outlook
IBIS World project a negative annual growth rate of -2.0% for 2011 to 2016
Major Players
The Coca-Cola Company - Market Share: 41.2%
PepsiCo Inc. - Market Share: 33.6%
Dr Pepper Snapple Group Inc. - Market Share: 15.4%

http://clients.ibisworld.com/industryus/default.aspx?indid=285

growth with an annual rate of 4.2% from 2006 to 2011
Outlook
IBIS World project an annual growth rate of 2.1% for 2011 to 2016
Major Players
Frito Lay North America - Market Share: 48.4%
Kraft Foods Inc. - Market Share: 5.2%
General Mills Inc. - Market Share: 5.1%

http://clients.ibisworld.com/industryus/default.aspx?indid=271

has been strong with annual growth rates of 10.4% from 2006 to 2011
Outlook
IBIS World project an annual growth rate of 0.5% for 2011 to 2016
Major Players
PepsiCo Inc. - Market Share: 38.4%
The Coca-Cola Company - Market Share: 21.5%
Dr Pepper Snapple Group Inc. - Market Share: 6.1%

 http://clients.ibisworld.com/industryus/default.aspx?indid=287

markets in 2010
Focus on growth in Central Asia and Eastern Europe
70% growth of sales in Russia over last 2 years
Robust economic indicators, low debt ratios, good foreign exchange reserves
Wimm-Bill-Dann acquisition
66% at $3.8 B total ownership to 77%
15 Aug 2011, ‘squeeze-out demand’ for other 23%
3,883.70 Russian rubles per share

Source: Q3 Earnings Release, Oct 2011

Annual Growth Rates:
12% in Net Revenue
10% Operating Profit
$29 B in Dividend and Share repurchases in the last 5 yrs

9% EPS
8% Operating Cash Flow

Brand $9.4bn
Doritos $4 B, Cheetos $3.1 B, Ruffles $2.6bn,
Tositos $1.7bn, Fritos $1.3bn

Transnational expansion strategy through balance between:
Localization
Maintaining consistent quality standards and cooking processes
5-year CAGR:
3% Volume
8% Revenue
8% NOPBT

Source: Q3 Earnings Release, Oct 2011

in volume
Pepsi Max, +93% in volume
Focused advertising & marketing campaigns
Pepsi Max
Diet Pepsi
Pepsi
Social media exposure
Continue innovating products
Pepsi Next
Develop Occasion-based marketing
On-the-Go Refreshment
Special Occasion and Celebrations
Meal-time and Snacking

Source: Q3 Earnings Release, Oct 2011

TTM growth
$150 MM

Source: Q3 Earnings Release, Oct 2011
Barclays “BTS” Consumer Conference, Sep 2011
http://www.pepsico.com/Download/Barclays_BTS_Presentation.pdf

2020
Huge growth potential, 5-year double-digit revenue CAGR
Strong demographic and consumer interest in health and wellness
Aging population seeking healthy and tasty foods
On-the-Go consumers and their demand for convenience

Source: Q3 Earnings Release, Oct 2011
Barclays “BTS” Consumer Conference, Sep 2011
http://www.pepsico.com/Download/Barclays_BTS_Presentation.pdf

Cost cutting measures
Currency exposure
Investors appealing for a split of Snacks and Beverages
Strong growth in snacks business
Strong growth with Tropicana and Gatorade
Weak CSD strategy and culture has impacted PepsiCo’s overall stock performance
While Coke has increased by about 50%
Over-spending in marketing and advertising
Kraft and Sara Lee example

Source: “Don’t Rule Out a Pepsi Breakup Yet”, Barron’s, 11/19/2011
Q3 Earnings Release, Oct 2011

together
Synergies unique to PepsiCo that lead to selling & service advantages and efficient operations:
Common Merchandising
Convenience Store Channel
Demographics
Broad Price Points
Prime-time Merchandising
Distribution Networks
New NFL 10 Year Deal

Source: Q3 Earnings Release, Oct 2011

Nestle Waters and Nestle Nutrition.

NYSE:KFT Kraft Foods Inc.
Manufactures and markets packaged food products, including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products.

NYSE:BGS B&G Foods Inc.
B&G Foods, Inc. (B&G Foods) manufactures, sells and distributes a diverse portfolio of branded shelf-stable food products. 

NYSE:GIS General Mills, Inc.
Global manufacturer and marketer of consumer foods. products categories in the US include cereals, refrigerated yogurt, soups, shelf stable and frozen vegetables, dough products, dessert and baking mixes, grain, fruit and savory snacks, and a variety of organic products.

3,500 beverages. Notable brands include: Coca-Cola, Powerade, Fanta, Sprite, Dasani and Vitamin Water

NYSE:COT Cott Corporation
Products: Red Rooster, Blue Charge

NYSE:DPS Dr Pepper Snapple Group, Inc.
Products: Dr Pepper, 7UP, Canada Dry, RC Cola Deja Blue

NasdaqGS:FIZZ National Beverage Corp.
Products: Shasta, Faygo, Everfresh

snack food products, including pretzels, crackers, kettle chips, cookies, potato chips and tortilla chips.

NasdaqGS:DMND Diamond Foods, Inc.
Products: Kettle Brand Potato Chips,

NYSE:CAG ConAgra Foods, Inc.
Consumer Foods producer. Brands include Banquet, David Seeds, Egg Beaters, Healthy Choice, Hebrew National, Pam and Snack Pack.

NYSE:HSY Hershey Co.
Snacks

so used closer to P/E
Price: 15.17

distributes beverages. Brands include Monster Energy, Peace Tea, Hansen's, Hansen's Natural Sodas, Junior Juice, Blue Sky, X-Presso Monster, Vidration, Hubert's, Rumba, Samba and Tango.

NYSE:CQB Chiquita Brands International Inc.
Products: Chiquita Fruit juices

but would love to buy on a pullback below $60