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10:55 am - listening to some pre conference call music while waiting for this mornings call to get under way
11:00 am - call is getting under way and currently going over the SEC regulations for the call (stock is currently down 0.6% as we head into the call)
11:05 am - CEO Indra Nooyi reviewing the quarter. Very pleased with the quarter results, especially since the company knew that this would be a tough quarter for the company
11:06 am - Lifting full year estimates to $3.35 from $3.30 for the year. Net revenue in the quarter rose 10% while net income jumped 13%
11:07 am - Beverage delivery was in line with the company's expectations for the quarter
11:08 am - Company is proud to announce that all American Frito-Lays products are now trans fat free
11:09 am - The 7-Up brand name saw great growth due to the release of 7-Up H20 during the quarter
11:12 am - Company has continued commitment to social responsibility.
- Focus on offering customers healthier choices
- Making great strides to help save the environment
11:15 am - Very happy with the second quarter (5% revenue and profit growth) and look for an even strong back end of the year. The beverage business has grown faster than the primary competitor (Coke) for the past 3 years running.
11:17 am - A great quarter for Frito-Lays. During the quarter Frito-Lays showed a 3% growth in volume and a 6% revenue growth
11:20 am - Sun Chips putting up yet another strong quarter in which it saw an impressive 28% sales growth. Lays chips segment is running behind under the company's expectations, but it is taking steps at picking up this segment of its business
11:22 am - Beverage business also showed a strong quarter. Category is continuing to grow as they add more products.
11:23 am - Enjoyment and vigoration segment of beverages saw single digit decline during the quarter, which was in line with the company's expectations. Energy beverage segment grew over 20% during the second quarter fueled by the Amp brand. Lipton Tea business grew over 20% during the quarter. Gatorade declined moderately which was in line with company expectations. Look for Gatorade to gradually increase in Q3 and then rapidly take off in Q4
11:26 am - While Gatorade has been a strong player in beverage for athletes that are currently "in the field", the company is getting ready to make big strides in Propel brand of Gatorade which will be a low calorie electrolyte drink that it hopes athletes will be using while not performing "on the field". This is the company's biggest announcement in the past 10 years regarding the Gatorade name
11:28 am - moving to look at a more international view of the company
11:29 am - A strong quarter for the company internationally. Overall fundamental performance remains very strong. Year to date revenues of 18%.
11:31 am - Snack volumes up 11% internationally during the quarter. Lays grew more than 30% in Russia and in India growth was also very strong.
11:32 am - Beverages saw 8% growth Internationally. Double digit growth in Russia, China, Brazil, Venezuela, Philippines, and a few other names I didn't catch
11:34 am - Mountain Dew and Tropicana Juices showed double digit growth during the quarter Internationally
11:36 am - Going back to the overall business with Mr. Goodman (I apologize if I caught your name incorrectly)
11:39 am - Lifting full year guidance from $3.30 to AT LEAST $3.35 per share
~ moving to the question answer portion of the call ~
11:43 am - Robert from Sanford Bernstein : Will the company continue to keep the recent Gatorade price increases where they are at? Or should we expect to see more price gains moving forward? No, the company feels that its products are now properly priced for the long run
11:46 am - Bonnie at Citigroup : How can the company plan to expect its non-carb business in China? They plan to see both acquisitions and organic growth playing a role in its growth in China as well as other developing markets. But they see great growth opportunities in China.
11:51 am - Mark @ Deutche : Wants to discuss a little about the rumor of a merger between Pepsi and Nestle. The company will not discuss any sort of M&A rumors.
11:53 am - Lauren from ? - can they discuss their plans for second half of the year investments. Company will not give out too many details, but that they do plan on investing in a majority of their markets during the second half of the year. Will be spread across International and North American business.
11:58 am - Cameron - Could they please explain if anything has changed in the marketplace that has led the company to increase R&D spending? Nothing really has changed, but the company just made a decision to focus on the Research in order to bring more people into their market.
12:01 pm - John at JP Morgan - Following on the last question, how much more re-investment does the company really think it needs to do into Frito-lays? The company is moving into several new areas for growth so as a result they are going to continue to fuel growth through investing.
12:03 pm - Cristine at Merrill Lynch : What impact did currency have? Increased division profits just about 1.5%. Can we estimate that the tax rate should move back to mid 27% moving into 2008? Yes, we should see about 1.5% move up in tax rate going ahead.
12:07 am - Matthew @ Morningstar : Dealing with Tropicana... how has it performed over the past few months and what can we expect moving forward. Has been performing in line with company expectations, and is hard to predict the commodity costs for this segment looking ahead.
12:09 am - Eric at Deutche: Is it unreasonable to assume that food is an area of target as opposed to straight snacks? Company will not really get into the breakdown in where they look to see more M&A going forward, but they will use the food business to drive the snack business. They don't want to get into food in a big way, will still focus primarily on the snack side of the business.
that brings the call to an end. The stock is now trading down 0.2% so it was able to make back 0.5% during the hour long conference call.
11:46 am - Bonnie at Citigroup : How can the company plan to expect its non-carb business in China? They plan to see both acquisitions and organic growth playing a role in its growth in China as well as other developing markets. But they see great growth opportunities in China.
11:51 am - Mark @ Deutche : Wants to discuss a little about the rumor of a merger between Pepsi and Nestle. The company will not discuss any sort of M&A rumors.
11:53 am - Lauren from ? - can they discuss their plans for second half of the year investments. Company will not give out too many details, but that they do plan on investing in a majority of their markets during the second half of the year. Will be spread across International and North American business.
11:58 am - Cameron - Could they please explain if anything has changed in the marketplace that has led the company to increase R&D spending? Nothing really has changed, but the company just made a decision to focus on the Research in order to bring more people into their market.
12:01 pm - John at JP Morgan - Following on the last question, how much more re-investment does the company really think it needs to do into Frito-lays? The company is moving into several new areas for growth so as a result they are going to continue to fuel growth through investing.
12:03 pm - Cristine at Merrill Lynch : What impact did currency have? Increased division profits just about 1.5%. Can we estimate that the tax rate should move back to mid 27% moving into 2008? Yes, we should see about 1.5% move up in tax rate going ahead.
12:07 am - Matthew @ Morningstar : Dealing with Tropicana... how has it performed over the past few months and what can we expect moving forward. Has been performing in line with company expectations, and is hard to predict the commodity costs for this segment looking ahead.
12:09 am - Eric at Deutche: Is it unreasonable to assume that food is an area of target as opposed to straight snacks? Company will not really get into the breakdown in where they look to see more M&A going forward, but they will use the food business to drive the snack business. They don't want to get into food in a big way, will still focus primarily on the snack side of the business.
that brings the call to an end. The stock is now trading down 0.2% so it was able to make back 0.5% during the hour long conference call.
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Reader Comments (Page 1 of 1)
7-28-2007 @ 12:27AM
kupukupu57 said...
I think it's great to be able to read minutes from a conference meeting with Pepsi, though my favorite drink is green tea straight-up from a tea bag, no additives, and just a touch of honey to sweeten. But, in any case, when I do drink a soda pop, which is not very often, my drink of choice is a Coke. (Sorry)