|
PEPSI Cola Philippines Inc. told the Philippine Stock
Exchange on Wednesday that its profit during the first six months of
its fiscal year 2008 inched up on higher sales volume, particularly
of its non-carbonated drinks.
In a disclosure, the soft drink
maker said its net income from July to December last year climbed 2
percent to P4.7 million over the same period the previous year.
The modest increase in profits
was due to the 10-percent increase in net sales to P6.43 billion,
driven by the 8 percent improvement in sales volume year on year.
Non-carbonated drinks led the increase in sales volume at 39
percent.
The company’s cost of goods
sold rose 7 percent to P4.36 billion due to volume growth, while
selling and distribution expenses also went up by 13 percent to P880
million year on year. General and administrative costs grew by 5.1
percent to P389 million.
Due to a one-time marketing
investment to seize opportunities that would help deliver long-term
business growth, marketing expense surged by 138 percent to P408.8
million, thereby reducing operational income by 11 percent to P389.9
million year on year.
The soda maker implemented
several projects “in anticipation” of proceeds from its maiden
share sale to the public last month. This resulted in a capital
expenditure of P1.25 billion that led to a net debt of P700 million
at end-December.
Besides its soft-drink products,
Pepsi manufactures and distributes Gatorade, Lipton Iced Tea,
Tropicana, Propel and Sting.
The company has 11 production
plants nationwide and distributes products through 101 warehouses
and 99 sales offices. Its third party distribution network
distributes to 300,000 outlets.
-Likha C. Cuevas-Miel
|
