Pepsi secures P1-B Metrobank loan for capex

MANILA, Philippines - Listed beverage maker Pepsi-Cola Products Philippines Inc. has secured P1 billion loan from Metropolitan Bank & Trust Co. (Metrobank) to back up its capital expenditures this year, capitalizing on a strong performance last year.

In a disclosure to the stock exchange, Pepsi-Cola said it “entered into a loan agreement with Metrobank to finance capital expansion plans this year.”

Jika Dalupan, the company’s vice-president for corporate affairs and communication, said the beverage firm raised P1 billion through a seven-year loan.

Pepsi-Cola said the agreement affirms the company’s strong outlook and financial stability.

Profits of the exclusive bottler of PepsiCo beverages in the Philippines nearly tripled to P844 million last year from P289 million in 2011.

The hefty earnings growth was backed by the surge in sales volume performance across brands and categories, with gross sales climbing 14 percent to P22.73 billion.

The company’s cost of sales rose nearly six percent to P14.2 billion from P13.45 billion a year ago.

Pepsi-Cola said it benefited from the price rollback of sugar, a major raw material for the company’s beverages.

The listed firm is the company behind Pepsi-Cola, Mountain Dew, Seven Up, Mirinda, Gatorade, Mug, Tropicana, Lipton, Sting and Premier.

Pepsi-Cola has just joined the fray in the powdered drinks category through Mirinda Powder Fun Mix as it aims to strengthen its non-carbonated business.

It also launched in September the Tropicana Coco Quench, which is 100-percent made from real coconut water. It will be available initially in the Philippines and later on to the rest of Asia as it seeks to expand its non-carbonated beverage segment.

The local Pepsi-Cola unit is partly owned by Lotte Chilsung, one of the biggest beverage companies in South Korea. The listed company has established manufacturing facilities across the Philippines, serving at least 440,000 outlets and providing employment through its extensive distribution network.