Manila, August 15 – Pepsi-Cola Products Philippines, Inc. (PCPPI) continued its uninterrupted growth in the second quarter of 2014, as it posted an 11% increase in sales volume versus the same period last year. This was driven by growth across major product categories and market geographies.
As a result, gross sales revenue grew by 11% for the quarter, reaching P8.3 billion. “A double digit topline growth is a commendable feat, considering a sluggish and highly competitive soft drinks industry," stated Furqan Ahmed Syed, PCPPI President.
This strong performance of PCPPI was backed by further increase in its investments in manufacturing and distribution assets, amounting to P861 million for the quarter. Cost of goods sold increased by 14% compared to the same period last year due to increases in volume, capex investment, depreciation and amortization. Operating expenses likewise increased by 10% however, when expressed as a percentage of net sales, it remains at parity with year-ago levels. “Overall, our second quarter performance were in line with our expectations," Syed added.
PCPPI delivered a net income of P344 million for the quarter, 11% lower than year-ago, as a result of competitive pricing, higher depreciation/amortization and increased operating expenses. “The damage caused by Typhoon Yolanda continued to dent our profitability, however, its impact is lower than in the first quarter. Despite these challenges, the Company will continue with its long term strategy of distribution and manufacturing investments supported by marketing programs to continue our growth momentum," shared Jika Dalupan, PCPPI VP for Corporate Affairs and Communications.
Among PCPPI’s recently launched products are Gatorade Green Fury, featuring Argentinian soccer star Lionel Messi, and Mountain Dew Neon.