-01- Recently, PepsiCo released its fourth-quarter and full-year results for fiscal 2019. According to the financial report, full-year 2019 net revenue was $67.161 billion, up 3.9% from $64.66 billion in the prior year, and full-year operating profit reached $10.29 billion, an increase of 2%. PepsiCo's fourth-quarter net revenue was $20.64 billion, up 5.7% year-over-year, beating market expectations. This was mainly due to the strong performance of PepsiCo's North American beverage and snack divisions. Data shows that organic sales for both Frito-Lay and PepsiCo Beverages North America grew by 3%, with combined revenue of $11.4 billion, accounting for about 55% of the company's revenue. In addition to North America, PepsiCo also achieved considerable organic growth in Latin America, Europe, and the Asia-Pacific region. Specifically, organic sales in Europe and Latin America grew by 6% year-over-year; organic sales in Africa, the Middle East, and South Asia grew by 8%, and organic sales in the Asia-Pacific region grew by 9%. However, net income attributable to PepsiCo in the fourth quarter was $1.766 billion, down 74% year-over-year, missing market expectations. Full-year 2019 net income attributable to shareholders was $7.314 billion, down 42% year-over-year. Additionally, PepsiCo CFO Hugh Johnston stated that due to the coronavirus outbreak, PepsiCo had "temporarily" closed all its factories in China, with only one factory resuming operations. According to him, China accounts for about 2% of PepsiCo's total business. Of course, after the outbreak, PepsiCo also announced a donation of 5 million RMB in emergency funds and provided corresponding support to help frontline workers involved in fighting the epidemic, contributing to the fight against the COVID-19 pandemic. -02- In fact, after PepsiCo's new chairman, Ramon Laguarta, took the helm, he emphasized increasing development in the Asia-Pacific region, especially the Chinese market. In July last year, PepsiCo announced it would invest approximately $131 million to acquire about 26% of the issued ordinary shares of China's Wumart Foods International Holdings Limited. For context, Wumart Foods is China's second-largest natural health food company, focusing on high-end nutritional powders based on grains. PepsiCo will acquire shares from minority shareholders, becoming the second-largest shareholder after the founder of Wumart Foods. The industry widely predicted that this investment signaled PepsiCo's determination to accelerate its development in the important Chinese market. Moreover, in November 2019, there were reports that Unilever, which has the world's largest tea business, would sell its Lipton brand, and PepsiCo was also drawn into the rumor. Because PepsiCo was likely one of the potential buyers, according to media reports, as early as 2004, PepsiCo China had already launched Lipton ready-to-drink tea. -03- According to the financial report, PepsiCo's Asia-Pacific region performed well in snacks and beverages, with food and snack business volume growing by 6%. However, it must be mentioned that the Chinese market, which has always performed well, performed mediocrely this time, especially in the beverage business. The financial report shows that the highest beverage business growth rates in the Asia-Pacific region were in Vietnam and Thailand, followed by the Philippines, while the beverage business growth rate in the Chinese market fell to single digits. When mentioning PepsiCo, it is natural to compare it with Coca-Cola. In early February this year, Coca-Cola released its 2019 financial statements. Data shows that Coca-Cola's full-year revenue was $37.266 billion, up 8.65% year-over-year; net profit was $8.985 billion, up 38.74% year-over-year. Due to increased demand for its sparkling soft drinks, tea, and coffee in North America and emerging markets, sales exceeded market expectations. According to PepsiCo Chairman Ramon Laguarta: "We are satisfied with our 2019 performance, as PepsiCo met or exceeded the financial targets set at the beginning of the year... We increased support for our brands, making them more local and consumer-centric; we strengthened market execution and enhanced our relationships with customers; we took a series of new initiatives to help build a more sustainable food system." For 2020, PepsiCo expects full-year organic revenue growth of 4%, and plans to invest heavily to support its beverage and snack food portfolio.