Pepsi Bottling Group Inc. officials said the Somers-based company saved $350 million in costs and productivity improvements in 2009 and reached its full-year financial targets despite “macroeconomic challenges” and a fourth-quarter market flattening worldwide.
PBG, which Purchase-based Pepsico Inc. will acquire this year, reported net income of $612 million last year, or diluted earnings per share of $2.77.  PBG delivered comparable diluted earnings per share of $2.55.?The company reported an operating free cash flow of $578 million for 2009, excluding $40 million in advisory fees last year for PBG”™s pending purchase by Pepsico. Those fees are expected to total $50 million to $60 million.
PBG Chairman and CEO Eric Foss in a statement said the $13 billion-a-year company continued to strengthen its brand portfolio in 2009 and enhanced its geographic portfolio in the U.S. and abroad while keeping a “relentless” focus on operational excellence.
Company revenue increased 1 percent on a currency neutral basis in 2009, while reported revenue decreased 4 percent. Net revenue per case improved 4 percent for the year on a currency neutral basis, with 3 percent growth in the U.S. and Canada, 7 percent in Europe and 6 percent in Mexico.
On a reported basis, worldwide net revenue per case declined 1 percent, with 2 percent growth in the U.S. and Canada segment and double-digit declines in Europe and Mexico.
PBG said worldwide physical case volume declined 3 percent for 2009, as expected. Volume dropped 2 percent in the U.S. and Canada segment, 4 percent in Mexico and 8 percent in Europe.
Reported worldwide operating income grew 61 percent, with a 2 percent decline in the U.S. and Canada segment offset by 11 percent growth in Europe and 116 percent growth in Mexico.
PBG officials said worldwide revenue was flat in the fourth quarter both on a currency neutral and reported basis. Currency neutral and reported worldwide net revenue per case each increased 3 percent, while worldwide physical case volume declined 3 percent in the quarter.
