Pepsi Q1 Net Income Up By 41%
May 04, 2015

Pepsi-Cola Products Philippines Inc., (PCPPI) continues to deliver strong growth as it posted impressive top-line and bottom-line growth for the first quarter of 2015. Gross sales revenue increased by 13.5% vs. same period last year to reach P7.3 billion for the quarter, making it the third quarter in a row where revenue growth was ahead of volume growth.

The company achieved a net income of P192 million, which is 41% higher vs. same period last year while net income margin improved by 60 basis points due to stronger focus on revenue management and overlapping of last year’s pricing rollback. Overall gross margin improved by 170 basis points.

“This strong top-line performance was supported by the company’s sustained and prudent investments in manufacturing, marketing & distribution assets. Our business progress is in line with our plans and we look forward to a sustained growth for the future”, stated PCPPI President Furqan Ahmed Syed.

Cost of goods sold increased by 12% for the quarter, driven mainly by volume growth and higher depreciation and amortization. Operating expenses, as a percentage of sales, remained at par with the same period last year.

Jika Dalupan, Vice President for Corporate Affairs & Communications adds, “We are very well pleased with the company’s performance whilst we continue to satisfy the thirst-quenching needs of our customers and consumers.”

PCPPI recently declared an annual cash dividend of Php0.066 per share to all stockholders of record of PCPPI as of the close of business on 12 May 2015, payable on 05 June 2015. PCPPI expects to pay total cash dividends amounting to Php243.8 million representing approximately 30% of its net income after tax in 2014. PCPPI last declared cash dividends in 2013, also at 30% of its 2012 net income after tax.