Cosmos posts 31% surge in net income

Buoyed by the brisk sales of its flagship cola brands, Cosmos Bottling Co. reported a 31 percent surge in net income, from P522 million in 1999 to P683 million last year.

A subsidiary of the food conglomerate RFM Corporation, Cosmos reported that its cash flow figures posted even stronger growth of 34 percent as earnings before interest and taxes plus depreciation and amortization rose from P1.1 billion in 1999 to P1.5 billion in 2000.

Based on its unaudited sales results, Cosmos said its consolidated net sales for 2000 grew by 28 percent from P4.1 billion to P5.2 billion on the back of a 25-percent growth in sales volume buoyed by higher sales of its Pop Cola brand of softdrink, as well as its flavors line up.

Cosmos chairman and chief executive officer Jose Concepcion III said the company continued to post double-digit growth in sales volume amidst a lackluster performance of the softdrink industry.

According to Concepcion the industry itself grew by only two percent in 2000 due to relatively weak consumer demand.

He said the company’s decision to increase its support to its flagship brand, Pop Cola, allowed Cosmos to increase its market share to almost 26 percent from 21 percent in 1999, despite the aggressive moves of its major competitors.

Concepcion said Pop Cola’s phenomenal growth would make it easy for the brand to corner an even bigger market share this year to at least 28 percent.

"On top of our value for money strategy, we have significantly improved the quality of our products, increased market awareness and expanded distribution in areas not previously covered," he said. "Cosmos in bullish about its future, more so this year with the expected drier weather and forthcoming election, plus the resurgence in consumer confidence brought about by the renewed optimism under the Arroyo administration."

Concepcion said Cosmos was currently expanding its capacity and distribution network to position itself towards faster growth. – Des Ferriols