Pepsi Amal

Presented by

Amal A

Table of Contents

• Company History• Company and Information

– Goods and Services– Major subsidies

• Analysis and Calculations– Financial calculations– Graphs

• Competitors• Ads & Future Predictions• Conclusion.

History• The Pepsi Cola Company began

in 1898, but it only became known as PepsiCo when it merged with Fruto lay in 1965.

• Tropicana was acquired in 1998 and PepsiCo merged with Quaker Oats and Gatorade in 2001.

• PepsiCo’s snack food operations (Frito Lay….) had their start in 1932.

• PepsiCo began its international snack food operations in 1966.

• Until 1997 , it owned Taco Bell, Pizza Hut, KFC.

• PepsiCo’s beverage business was founded at the turn of the century by Caleb Bradham

Company Overview• PepsiCo is a world leader in

snacks and beverages, with overall averages revenues of about $ 39.4 billion and 168,000 employees.

• PepsiCo brands are available in 200 countries.

• Pepsi brand names are about 100 years old.

• Head Quarters at Purchase, NY, US

• Slogan: Performance with Purpose.

• Website : Pepsico.com

Goods and Services• PepsiCo is known for the

selling of outstanding beverages, soft drinks, and snacks that are loved all over the world.

• Diet Pepsi.• Mountain Dew.• Seirra Mist.• Naked Juice• Lipton Iced tea.• Mirinda

Major Subsidiaries

• Companies owned by Pepsico:– Frito Lay

– Gatorade

– Tropicana

– Quaker Oats

– Pepsi

• Pepsico also owns some companies outside the U.S

FINANCIAL CALCULATIONS

YEARS 2007% increase 2006% increase 2005

% increase

REVENUES 39,474 12 35,137 8 32,562 7

EXPENSES 18,038 14.5 15,762 11 14,176 8

NET INCOME 21,038 8.5 19,375 5 18,386 6

PROFIT MARGIN 10% 11% 14%

NET INCOME % CHANGE 5% 6% 9%

NET INCOME PER SHARE 1.31 1.39 1.51

FINANCIAL CALCULATIONS

2007 2006 2005Stock prices(per share) 32 23 19Earnings (per share) 1.77 1.58 1.42Earnings growth rate 0.15 0.1 0.25Price/ Earnings 33 29 22

Historical Stock Splits

DATE Price per share on day of split

Split Ratio

June 9, 1967 $86.25 2 for 1

May 5,1977 $71.625 3 for 1

May 28, 1986 $98.25 3 for 1

Sept 4, 1999 $74.50 3 for 1

May 28, 1996 $66.31 2 for 1

Comparison between Revenues, Expenses, and Net Income

Comparision of Market Share for Soft Drinks

Soft drinks Market SharePepsi 41%Coca cola 58%Others 2%

Comparision of Market ShareFor Bottled Water

Companies Market ShareAquafina (Pepsi) 29.42%Kinley 23%Others 47.58%

Comparision of Market Share for Packaged Food(Snacks)

Companies Market ShareLays 55%Haldirams 25%Bingo 10%Others 10%

Who should Invest In our Company?

• Old and middle aged people interested in retirement funds or college savings.

• A steady stock holder,

• Not a risk taker or some one who expects immediate wealth.

Market Location History

• PepsiCo shares are traded mainly at the NY Stock exchange in the U.S.

• Also the company is traded in Amsterdam, Chicago, Swiss, and Tokyo Stock Exchanges.

Factory Locations.

• INTERNATIONALo Purchase , NY, USo Bottling Plants in

many parts of the World

INDIA

Total 40 bottling outlets

17 company owned 22 franchise owned

Major Competitors

• Coca- Cola• Royal Crown Cola

PepsiCo vs. Coca Cola (major competitor)

PepsiCo 2007revenues 39,474net income 21038net income per share 1.31

CocaCola 2007revenues 52,527net income 31,557net income per share 1.45

Comparision with Competitors

CocaCola PepsiCoRevenues 52,527 39,474Net income 31,557 21,038Net income per share 1.45 1.31

Advertising and Future Products

• Advertisements have become more common on the air. For example,

Britney Spears.• Some Future Products

are:– Propel Fitness Water

– Gatorade Ice Flavors

CONCLUSION Focus on the youth of the middle-east countries. More focus on sales of Gatorade. PepsiCo is also reformulating its Aquafina Alive

water with a new sweetener blend that has fewer calories.

PepsiCo has a steady growth rate and a very positive potential. PepsiCo is always looking into the future, trying to make

the company most profitable and suiting to its shareholders.

PepsiCo has proved to have a high and continuously rising profit margin.