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Pepsico, Inc. Message Board

  • rwh4fshg rwh4fshg Feb 18, 2012 2:54 PM Flag

    What is there not to like about PEP?

    On Feb 9, they reported:

    -- PEP worldwide snacks volume grew 8 percent in the quarter and the full year

    -- PEP worldwide beverage volume grew 3 percent in the quarter and 5 percent for the full year

    -- Net revenue increased 11 percent in the quarter and full-year net revenue increased 15 percent

    -- Net income increased 4 percent in the quarter and 2 percent for the full-year; core net income increased 8 percent in the quarter and 5 percent for the full-year

    -- EPS increased 5 percent to $0.89 in the quarter and 3 percent to $4.03 for the full-year; Core EPS grew 9 percent to $1.15 in the quarter and full-year core EPS grew 7 percent to $4.40

    Additionally, PEP is:

    -- Acquired Wimm-Bill-Dann, which further strengthens our position in Russia

    -- Pursuing new franchise models for our beverage operations in Mexico and China

    -- Acquisition of Mabel which extends our macrosnack position in Brazil

    Solid growth is a competitive market. And for that, it takes a 7% plus hit in the PPS?

    Bought a mice position Friday. See yall longs at $65 soon.

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    • Some posters have asked: 'What's not to like?'

      Here's a sampling.
      1-An ever growing list of employees disgruntled with the CEO Nooyi, due to cuts in pay, and cuts in benefits
      2-A major player (Kellogg) moving beyond cereals and crackers into Pringles - a direct attack on PEPs profit cow Frito Lay
      3-The focus on, and acquisition of, nutritional businesses while abandoning their bread and butter sugar water and junk food businesses (nice job nooyi - it's your strategy)
      4-The slow growth rate of the big profit provider salty snack business - Frito
      5-The margin mix issue on the beverage side - high margin Carbonated Bevs losing share and volume while low margin Non-Carb Bevs are increasing in volume - a nasty long term trend
      6-The complete idiocy of nooyi in making all the wrong decisions in an attempt to leave a legacy - unfortunately for shareholders her legacy already exists in the form of the worst performing CEO in pepsico history
      7-The pepsi branded cola becoming the #3 cola behind not only coke but also diet coke
      8-The transparently sad attempt by pep to try to claim it now has more billion dollar brands (in an attempt to minimize the negative press of pepsi falling to the #3 brand) by including brands it licenses from others (e.g.Lipton Tea)

      In sum, this CEO must go...she couldn't succeed by delivering numbers similar to her predecessors so she tries to redefine what success is (performance with a purpose - what a bunch of BS). She is single handedly responsible for items listed 1-8 above but yet denies responsibility (or attempts to deflect it - 'oh I hired the wrong people'). What a crock of sheet. Get rid of the greedy egomaniac pig and pepsico stock will grow. She only got the job because she was indian and that was/is a key market for pep.

      • 1 Reply to res_communes
      • PEP has all the makings of being a great company with attendant (great) stock performance. But there is a need for a management change at the very top. I have nothing against senior management, but there is need for a change. Great companies can be taken down by poor management. Look at HPQ, RIMM, YHOO, etc. At PEP, excuses, not withstanding, it is time to give someone else a chance at successfully managing this franchise.

    • How about stock performance over the past five years?
      How about Brand Pepsi falling to #3 behind Coke and Diet Coke?
      How about all the waste on unsuccessful package changes (Trop disaster, Pepsi smile faces, "G")?
      How about continuous layoffs each year since new leadership? Check morale and loyalty lost over those years? Count the number of years of experienced lost?

    • They forecasted lower profits in 2012, the Q4 report was fine. 2012 is a re-set due to renewed heavy marketing and some lay offs. But yes, Frito-Lay leads the way for Pepsi and Frito-Lay is the snack market dominator. Pepsi looks good due to the stock price re-set!

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