Pepsi reports 2012 net income of P844 M

MANILA, Philippines—Pepsi-Cola Products Philippines Inc. (PCPPI) grew its net income last year by 192 percent to P844 million on the back of double-digit growth in volume and  softer sugar prices.

For the fourth quarter alone, net profit doubled to P147 million on gross sales of P6.2 billion.

Volume grew by 21 percent for the quarter, bringing full-year volume growth to an average of 15 percent across brands and categories.

Gross sales for the full year rose by 14 percent to P22.73 billion.

“This is a significant feat given the aggressive competition, marketplace challenges and heavy monsoon rains. We focused on driving growth of both the carbonated and non-carbonated drinks segments, in line with the strategy on ensuring affordability and availability across the Philippines,” said Jika Dalupan, PCPPI’s vice president for corporate affairs and communications.

Cost of sales, which consists primarily of raw and packaging materials, direct labor and manufacturing overhead, increased by 6 percent from a year ago, driven mainly by higher sales volume. However, as a percentage of net sales, cost of sales decreased by 6 percentage points due to the price rollback of sugar, a major cost component.

As a result, the company’s gross profit reached P5.29 billion, an increase of 44 percent from 2011.