Manila, April 25 – Pepsi-Cola Products Philippines, Inc. (PCPPI) delivered strong top-line sales for the first quarter of the year, posting a net income of P270 million -- a remarkable increase of 20%, overlapping a noteworthy 606% profit growth in the same period in 2012. Gross revenues reached P6 billion for the quarter, a considerable increase of 14%, with sales volume up by 18% versus the same quarter last year.
“This significant achievement was driven by increasing distribution coverage with the intent of reaching more consumers from various consumer segments. We also focused on product expansion and aggressive marketing programs, with equally supported investments in containers, coolers, vehicles and manufacturing”, PCPPI President Partho Chakrabarti said.
Cost of Sales, consisting primarily of raw and packaging materials, direct labor and manufacturing overhead, increased by 13% from the first quarter of 2012 – albeit still lower than volume growth of 18%, demonstrating cost efficiencies. This increase is driven primarily by higher volume, increase in marketing behind aggressive programs and higher depreciation and amortization from capital expenditure investments. As a result, the Company’s gross profit reached P1.4 billion, an increase of 14% from the same period last year.
Operating expenses consisting of selling and distribution, general and administrative, and marketing expenses increased by 12% versus the same period in 2012. “We operated amidst a marketplace marked with intense competition”, shared Jika Dalupan, PCPPI’s Vice-President for Corporate Affairs and Communications. “Fortunately, our notable top-line growth helped fund strategic investments in sales and distribution infrastructure and personnel as well as marketing campaigns”, Dalupan added.
PCPPI most recently launched a new visual identity for its leading sports drink, Gatorade, with the introduction of top professional and amateur athletes as brand ambassadors. The company is also set to conclude its 45-day promo, “Hataw Araw-Araw”, where one car a day was given away to lucky patrons of Pepsi products.
Source: The Philippine Star--- http://www.philstar.com/business/2013/04/26/934909/pepsi-cola-profit-jumps-20-p270m-q1