Manila, July 30 – Pepsi-Cola Products Philippines, Inc. (PCPPI) delivered strong second quarter and half-year top-line sales driven by record volumes across the carbonated soft drinks and non-carbonated beverage segments. Gross sales reached P6.10 billion for the three-month period and P11.31 billion for the six-month period ending on June 30, with a significant increase of 16% from the same period in 2011.
“This remarkable achievement was fuelled by outstanding performance across brands and categories, particularly in the cola segment where we registered strong growth,” PCPPI President Partho Chakrabarti said.
The reduction of key raw and packaging materials costs also contributed to the Company’s strong performance. As percentage of net sales, cost of sales decreased by 8 percentage points versus the same period last year. This huge decline in cost of sales was mainly due to the decrease in average sugar price by 32%. Operating expenses, which consists mainly of selling and distribution, general/administrative and marketing expenses, remained manageable due to Company’s sustained efforts to control costs, with a negligible increase of .01 percentage point in Q2.
As a result, PCPPI’s gross profit reached P2.68 billion for the first half of the year, representing a 60% increase compared to the same period in 2011. The Company likewise posted a net income of P578 million, representing 436% growth compared to the half-way mark last year.
Chakrabarti further adds, “We are buoyed by the terrific response of our consumers to our product innovations such as Sting Power Pacq with Malunggay and Gatorade Low Carb. With our continued focus on delivering the needs of our consumers, we hope to sustain the momentum for the rest the year.”