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PROFITS at the country’s lone listed soda bottler
fell on modest growth in soft drink sales.
In a disclosure, Pepsi Cola
Products Philippines Inc. on Wednesday said its unaudited profits
fell for the first nine months of fiscal year 2008 ending in March
as revenues from its soft drink products declined in the third
quarter.
In the first three months this
year, revenues declined by 1.7 percent to P3.6 billion on the back
of the “softness” in carbonated soft drink volumes and lower
pricing brought about by stiffer competition. Noncarbonated beverage
revenues however climbed by 24 percent year on year due to increased
volume.
Net income for the first three
months this year declined by 6 percent to P217.8 million as the
company’s gross profit rate was down by 2 percentage points due to
lower pricing. Operating expenses also declined by 7 percent due to
a 45-percent drop in marketing expenses. Year-to-date, marketing
expenses however surged 51 percent.
Pepsi’s net income for the
9-month period slipped by 1.8 percent to P497 million. Gross
revenues for the period grew 6.5 percent to P11.1 billion year on
year, driven by growth in noncarbonated beverages, which rose by 31
percent.
Operating expenses from October
to March grew by 15 percent due to a special “one-time marketing
investment made during the period, the benefits [of] which are
likely to be felt [in] a future period,” Pepsi said.
--Likha C. Cuevas-Miel
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