Pepsi PH’s first half profit up 17% to P560M

BEVERAGE-maker Pepsi-Cola Products Philippines Inc. (PCPPI) saw a 17-percent year-on-year growth in six-month net profit to P560 million on higher sales margins and volume.

For the second quarter alone, net profit rose by 7 percent year-on-year to P368 million, the beverage company reported to the Philippine Stock Exchange.

Gross sales revenue increased by 9 percent for the six-month period and 5 percent for the second quarter, reaching P16 billion year-to-date as PCPPI reported growth across all major product categories.

“We are pleased by our performance in the first half. The solid results have been made possible through gains in distribution, prudent revenue management, accelerated productivity and leverage on fixed costs. The creative excellence and uncontainable passion of our team continues to make a difference to our business performance”, PCPPI president Furqan Ahmed Syed said.

Cost of goods sold increased by 9 percent year-on-year for the six-month period and 7 percent for the quarter, driven by volume growth and higher depreciation and amortization from increased capital outlays, the company said.

In a regulatory filing, the company said net income margin expanded by 30 basis points on June year-to-date basis. “This is mainly driven by the company’s strong commitment on revenue management and productivity initiatives to manage costs and foster efficiency in its operations,” the report said.

The company achieved a gross profit P3.4 billion during the six-month period and P1.8 billion for the second quarter, increasing by 9.6 percent and 0.7 percent respectively versus the same period last year.

Operating expenses increased by 7.2 percent for the six-month period and decreased by 0.3 percent for the quarter versus year ago

PCPPI announced last May that it would make and distribute a range of PepsiCo’s popular snack products and flavors to the Philippines’ 100 million consumers. The company is expected to commence manufacturing later this year.