Pepsi-Cola Products Philippines Inc., the exclusive bottler of PepsiCo Inc. beverages in the country, is optimistic on its growth prospects for the year as sales were bolstered by the recently concluded election season.
Pepsi Philippines’ chief financial officer Imran Moid Friday said the company saw strong volume growth in the first quarter, and this likely continued through the second quarter of the year, ahead of the May 9, 2016 polls.
Despite growth, Moid cited challenges including high sugar prices, a key input in making its products, and start-up costs in its snacks business.
Pepsi Philippines is known for its flagship Pepsi Cola and 7-Up as well as non-carbonated drinks like Gatorade and Tropicana. The company inaugurated its snacks manufacturing facility in Laguna last February as it introduced the popular Lays and Cheetos snacks “at affordable price points.”
“We are bullish about the future of our business and will continue to build our food and beverage portfolio,” the company said in its annual report.
Pepsi Philippines earlier said gross sales revenue rose by 12 percent to P8.2 billion in the first quarter of 2016 from year-ago level.
Higher costs were also seen in that period. The company said cost of goods sold increased by 16 percent for the first quarter, “driven by the sharp increase in sugar prices.” This also contributed to the decrease in net income by 17 percent to P159.3 million.