11 April 2016 (Manila) – Pepsi-Cola Products Philippines, Inc. (PCPPI) delivered consistent growth in 2015 as it saw its gross sales revenue increasing by 7% for the last quarter and 8% for the full-year period, reaching P32 billion for the entire year. The company’s revenue growth was ahead of volume growth, driven by its strong focus on revenue management.
The Company achieved a gross profit of P1.5 billion for the quarter and P6 billion for full year or +1% versus year ago. Cost of goods sold increased by 14% for the quarter and 10% for the full year, driven primarily by sharp increase in sugar in the last two quarters which was partially off-set by volume growth. “Despite a sluggish industry growth and a very steep increase in sugar prices in the second half of the year, we still managed to grow our beverage profits for the full year. I am proud of what our team managed to accomplish in a very challenging year. This is a clear demonstration of the exceptional progress we have made as an organisation particularly on revenue management and driving cost productivity”, stated PCPPI President Furqan Ahmed Syed.
Operating expenses decreased by 8.7% for the quarter versus year ago and increased by 0.4% full year compared to 2014. As a % of net sales, operating expenses were 320 basis points and 140 basis points better than year ago for the fourth quarter and full year respectively. Net income remained flat versus previous year due to high sugar prices and the start-up expenses of PCPPI’s snacks business. The company also made investments in manufacturing and distribution assets amounting to P4.2Bn in 2015, 8% higher than year ago level.
Commenting on these developments, Syed further shares, “2015 was a special year for PCPPI. We began commercial production of our globally acclaimed Snack food brands. The introduction of Lays and Cheetos at affordable price points opens up exciting new growth horizons for PCPPI. On the other hand, our beverage business performance also remains solid as we managed to outgrow the industry for yet another year”.
“We are well positioned to be a leading F&B company in the Philippines and we are bullish about the future of our business. We will continue to build our Food and Beverage portfolio and invest in accelerating our future growth”, Syed concluded.
PCPPI started commercial production of snacks late in the fourth quarter of 2015 and plans to capitalize on this strong category opportunity.