PepsiCo’s valuation has risen by 8.5% since the beginning of 2015 and by 2.2% since the announcement of the company’s 3Q15 results on October 6, 2015.
PepsiCo expects to return ~$9 billion to shareholders in 2015, including $4 billion through dividends and $5 billion in share repurchases.
PepsiCo generated $3 billion in productivity savings between fiscal 2012 and fiscal 2014. The company is now pursuing a five-year productivity program.
PepsiCo’s gross margin was 54.7% in 3Q15, up from 53.6% in 3Q14. This marked the 13th consecutive quarter of gross margin expansion for PepsiCo.
PepsiCo’s Frito-Lay North America division saw its segment revenue grow by 0.8% to $3.6 billion in 3Q15 ended September 5, 2015.
The increase in PepsiCo’s North America Beverages segment volumes was mainly due to a 10% rise in still beverage volumes.
PepsiCo’s North America Beverages segment is the company’s largest segment in terms of revenue contribution.
PepsiCo’s revenue was $16.3 billion in 3Q15 ended September 5, 2015. This marked the fourth consecutive quarter in which the company’s revenue fell.
PepsiCo’s 3Q15 earnings came in at $1.35 per share on an adjusted basis, ahead of the consensus Wall Street analyst earnings estimate of $1.26 per share.
SABMiller has the smaller volume share in the US market, about 27%. It operates in the US through MillerCoors, its joint venture with the Molson Coors Brewing Company.
SABMiller’s board has refused three bids made by Anheuser-Busch InBev. ABI’s third offer was for 42.15 pounds per share.
ABI expects to finance the transaction using a combination of internally generated cash and external debt.
Anheuser-Busch InBev expects Africa to play a major role in its growth if it were to combine with SABMiller. Africa’s relatively younger population and growth prospects make it a compelling investment destination for brewers.
Altria’s support as SABMiller’s largest shareholder is vital. The company has held a stake in SABMiller since 2002.
The partial shares option structured with ABI’s proposal is not an advantageous option for many of SABMiller shareholders. This is due to the illiquidity of the restricted shares proposed to be issued by ABI under the option.
Under the partial stock option, shareholders can elect to exchange each existing SABMiller share with 0.483969 ordinary shares in Anheuser-Busch InBev.
On October 7, Anheuser-Busch InBev announced a formal cash bid of 42.2 pounds per share to SABMiller’s board. This was the third offer rejected by SABMiller.
Eurozone’s Markit Retail PMI increased to 51.9 in September. Baring France, all other major Eurozone countries registered expansions in retail activity.
As of October 5, 2015, Keurig Green Mountain’s stock price has declined by a staggering 58.6% to $54.65 since the beginning of 2015.
Keurig has focused on innovative beverage systems and flavors to boost sales. Its latest release, Keurig Kold, is an example of its innovative technology.