Manila – Pepsi-Cola Products Philippines, Inc. (PCPPI) delivered a high double-digit growth of 21% in volumes for the last quarter of 2012. Its gross sales of P6.2 billion resulted to a doubling of net income for the quarter to P147 million, buoyed by high volume growth, lower sugar prices and stringent cost management.
“The company’s continued investment in marketing and distribution as well as pack-price and flavour innovations have been fruitful as we outperformed industry growth for yet another quarter”, PCPPI President Partho Chakrabarti said.
PCPPI delivered strong top-line sales for the full year of 2012. Gross sales, fuelled by remarkable 15% sales volume growth across brands and categories, reached P22.73 billion for the year, a considerable increase of 14% from 2011.
According to Jika Dalupan, PCPPI’s VP for Corporate Affairs and Communications, “This is a significant feat given the aggressive competition, marketplace challenges and heavy monsoon rains. We focused on driving growth of both the carbonated and non-carbonated drinks segments, in line with the strategy on ensuring affordability and availability across the Philippines”.
Cost of sales, which consists primarily of raw and packaging materials, direct labor and manufacturing overhead, increased by 6% from 2011, driven mainly by higher sales volume. However, as a percentage of net sales, cost of sales decreased by 6 percentage points from 2011 levels, mainly due to the price rollback of sugar, a major cost component. As a result, the company’s gross profit reached P5.29 billion, an increase of 44% from 2011.
PCPPI’s strong performance allowed the company to make strategic investments in capital expenditures, Marketing and Sales staff resulting in the slight increase in Operating Expenses percentage to net sales by 2 percentage points. However, operating expenses -- mainly composed of selling and distribution, general and administrative, and marketing expenses -- remained manageable.
The company’s annual net income significantly improved to P844 million, an increase of 192% compared to 2011. “On the back of this remarkable performance, we expect to improve further in 2013 with prudent cost management, increased marketing efforts and a generally positive economic environment. We will continue to innovate with brands that will satisfy the thirst-quenching needs of the Filipino consumers”, Chakrabarti added.
PCPPI most recently announced its foray into the Powdered Juice segment with Mirinda Powder Fun Mix. It also launched its biggest promo to date where consumers stand to win one car each day for the whole promo duration of 45 days.