Beverage-maker Pepsi-Cola Products Philippines Inc. (PCPPI) grew nine-month net profit by 4.6 percent year-on-year to P739.08 million, benefiting from strong consumer spending in the country.
Excluding losses from the start-up snacks business, PCPPI’s net profit for the nine-month period would have been P800 million and P200 million for the third quarter, respectively rising by 14 percent and 42 percent year-on-year.
For the third quarter alone, headline net profit was up by 23 percent year-on-year to P180 million.
Sales revenues reached P26.8 billion for the nine-month period, representing a year-on-year growth of 13 percent. For the third quarter alone, the company achieved sales revenues of P8.7 billion, translating to a growth of 14 percent versus same period last year.
Revenue growth continued to outpace volume growth spurred by a strong focus on new product initiatives and revenue management, the company reported.
“We are delighted by the fantastic results achieved in third quarter. This is another show of confidence by our consumers on our world class product portfolio. Our consumers loved product innovations and campaigns such as Mountain Dew’s “Dewmocracy”, Lipton’s “Positivitea” and Tropicana’s “Straight to the Good Stuff,” said PCPPI president Furqan Ahmed Syed.
Cost of goods sold rose by 15 percent for the nine-month period and by 14 percent year-on-year in the third quarter, driven primarily by sharp increase in sugar prices. However, improved productivity particularly related to line efficiencies, value engineering and water/ energy conservation initiatives mitigated the effects of higher sugar prices.
“We strongly believe in the future potential of Philippines as a country and our bond with the Filipino people keeps getting stronger with every passing day. We have evolved a compelling 10 year vision for the business and we will continue to transform PCPPI into a world class food and beverage organization of the future”, Syed added.
Meanwhile, the company recently launched the “Give the Gift of Light this Christmas” campaign in line with its global Liter of Light program. For every Pepsi sold, the company will donate solar light bulbs to energy-deprived areas in the country.