Carlsberg Group (OTCPK:CABG.Y) 2025 Capital Markets Day October 01, 2025 08:00 AM ET Company ParticipantsJacob Aarup-Andersen - CEOAnders Røed - EVP CommercialPaul Chabran - Managing Director of UKNilesh Patel - Managing Director of IndiaEsther Choi - Chief Digital and Technology OfficerUlrike Fearn - CFONikos Zois - EVP and CEE of IndiaSøren Brinck - EVP of Western EuropeCK Lee - PresidentJoão Abecasis - EVP of AsiaConference Call ParticipantsOlivia Chevin-Auld - Finance AnalystSarah Simon - AnalystRichard ...

Core Viewpoint - Elliott Investment Management, managing $4 billion in PepsiCo, seeks significant changes to enhance the company's performance despite recognizing it as a strong consumer franchise [1][4][5]. Group 1: Elliott's Goals and Recommendations - Elliott aims to help PepsiCo sharpen focus, drive innovation, and unlock value from its leading brands and scale [4][5]. - The investor believes PepsiCo is at a "critical inflection point" and describes it as a "dramatic under-performer" in North America [7][8]. - Recommendations include reviewing the North American food and drinks business structure, refranchising the drinks bottling network, and streamlining the beverage portfolio [6][9][25]. Group 2: Financial Performance and Market Context - In 2024, PepsiCo reported net revenue of $91.85 billion, a 0.4% increase year-over-year, with operating profit growing 7.5% to $12.89 billion [13]. - However, the company faced challenges, including a 0.3% decline in first-half net revenue and a 35.4% drop in operating profit [16]. - PepsiCo's share price has fallen over 5% this year, contrasting with Coca-Cola's nearly 8% increase [16]. Group 3: Portfolio Optimization and Strategic Moves - Elliott emphasizes the need for PepsiCo to optimize its portfolio by offloading non-core and underperforming assets, similar to strategies employed by Coca-Cola and Unilever [21][24]. - The investor praised PepsiCo's recent sale of Rockstar brand rights as a positive step towards simplifying its portfolio [24]. - There is speculation about the future of Quaker within PepsiCo's portfolio, with suggestions that it may lack strategic interest without Tropicana [22][23]. Group 4: Management and Investor Sentiment - PepsiCo's management has acknowledged Elliott's input, stating they value constructive dialogue to enhance long-term shareholder value [12][18]. - Investor sentiment appears mixed, with some skepticism regarding the feasibility of Elliott's proposals, particularly around refranchising [30]. - Analysts suggest that Elliott's involvement may create urgency for management to improve performance and address operational challenges [29].