Pepsi posts double-digit profit growth in Q2

MANILA, Philippines - Listed beverage maker Pepsi-Cola Products Philippines Inc. (PCPPI) continued to post double digit income growth in the second quarter on strong sales from major carbonated and non-carbonated drinks segments.

In a regulatory filing, PCPPI said its total comprehensive income picked up 12.67 percent to P387.73 million from P344.1 million a year ago.

Net sales, which are free from sales returns and discounts, jumped 22 percent to P6.34 billion from P5.24 billion in the same period last year, the company said.

The latest data allowed PCPPI to post a 17-percent growth in first half income to P657.94 million compared with P560.41 million last year.

“By sustaining our drive on product availability and affordability across the country, it allowed us to achieve remarkable volume growth for the quarter: the sixth consecutive quarter of strong, double-digit growth for the company,” said PCPPI president Partho Chakrabarti.

“We are pleased to have outperformed the industry for yet another quarter,” Chakrabarti added.

In the first semester, PCPPI’s net sales climbed 17 percent to P11.43 billion from P9.74 billion a year ago. PCPPI said its flagship brand Pepsi led the growth that was driven by the carbonated softdrinks segment.

Cost of sales, which consists mainly of raw and packaging materials, direct labor and manufacturing overhead costs, increased at the same pace of 17 percent to P8.28 billion.

“However, as a percentage of net sales, it remained at the same level as year ago, with costs of sugar and other raw and packaging materials remaining stable from 2012 levels,” PCPPI said.

Operating expenses, which is composed of selling and distribution, general and administrative, and marketing expenses, rose 18 percent to P2.21 billion in the first half, which is still manageable due to cost controls, PCPPI said.

Moving forward, the beverage maker aims to maintain its growth trend.

“The company is optimistic in preserving growth and profitability through continued efforts to drive top-line growth, sustain cost management, implement capital expenditures and increase marketing efforts,” said Jika Dalupan, PCPPPI’s vice-president for corporate affairs.

PCPPI is the exclusive bottler of PepsiCo beverages in the Philippines which include Pepsi-Cola, Mountain Dew, Seven Up, Mirinda, Gatorade and Tropicana, Mug, Tropicana, Lipton, Sting, and Premier.

PCPPI also just joined the fray in the energy drinks category through Mirinda Powder Fun Mix as it aims to strengthen its non-carbonated business.