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Unformatted text preview: Quaker merger boosts PepsiCo profits LATEST NEWS HEADLINES • Browning agents offer speedy customization • Forbes to focus on nutraceutical business • Why weight loss supplements don't work, according to GSK • Penford rolls out fibre with resistant potato starch product • Golden Peanut launches organic lines on mainstream demand 11-Feb-2003- The merger in 2000 with Quaker Oats continues to pay off for the soft drinks and snacks company PepsiCo. The company last week reported double-digit operating profit growth for the year to December 2002, boosted by expanded margins as a result of synergies from the Quaker deal. The company has already realised $250 million in synergies from the merger and this should rise to $400 million by the end of 2004. PepsiCo reported net revenues for the full year of $25 billion, up 4 per cent on the previous year (or 5 per cent at constant exchange rates). Volume sales for the year were up 4 per cent, with a 5 per cent rise in snack sales and a 4 per cent increase in beverages. But it was at the operating profit level that the synergies with Quaker were most clearly seen, rising 11 per cent for the...
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This note was uploaded on 06/08/2009 for the course MRKT 303 taught by Professor Staff during the Spring '08 term at S.E. Louisiana.
- Spring '08