The Pepsi Bottling Group Reports Strong Top-Line Growth and Record Earnings for 2007
— Comparable EPS Growth of 16% to $2.20; Reported EPS Up 6% to $2.29
— Comparable Operating Income Growth of 8% with Reported Up 5%
— Double-Digit Cash Flow Growth
— Company Confirms 2008 Guidance
SOMERS, N.Y.–Jan. 29, 2008–The Pepsi Bottling Group, Inc. (NYSE:
PBG) today announced financial results for the fourth quarter and full-year 2007. For the full year, the Company reported revenue of
$13.6 billion, a seven percent increase over the previous year. Net income for the year was $532 million, or diluted earnings per share
(EPS) of $2.29. This includes a net after-tax gain of $21 million, or
$0.09 per diluted share, from tax items, restructuring charges and an asset disposal charge. On a comparable basis, full-year 2007 net income was $511 million or diluted EPS of $2.20. For 2006, PBG reported net income of $522 million, or diluted EPS of $2.16, which included a net after-tax gain of $0.27 due to the reversal of tax reserves and income tax law changes.
PBG reported net income of $81 million in the fourth quarter, or diluted EPS of $0.35. This includes a net after-tax charge of $11 million or approximately $0.05 per diluted share due to restructuring charges, an asset disposal charge and tax items. Comparable diluted EPS was $0.39. In the fourth quarter of 2006, the company reported net income of $133 million, or diluted EPS of $0.55, including a $0.22 per diluted share gain due primarily to the reversal of tax reserves.
"PBG had an outstanding year in 2007 because we executed our game plan with precision and discipline," said PBG President and Chief Executive Officer Eric Foss. "We delivered strong worldwide net revenue per case growth despite significant commodity cost pressures and achieved impressive productivity gains through operational excellence. We accomplished these objectives while still investing for future growth, a balance that positions us well for the long-term.
"We are confident that we have the right strategy in place to continue building on our proven track record of success," Foss continued. "With a clear plan for delivering profitable top-line growth in the U.S. and Canada, a focus on fully leveraging the growth potential in Europe and particularly Russia, and a commitment to achieving sustainable profitability improvements in Mexico, we will be able to optimize our performance in 2008 and beyond."