Listed bottler Pepsi Cola Products Philippines Inc. on Tuesday said earnings last year were flat due to higher sugar prices and spending on a new snack line.
In a disclosure to the Philippine Stock Exchange, the bottler said net income P812.08 million in 2015, nearly unchanged from P811 million a year earlier.
“The company will continue with its long-term strategy of distribution and manufacturing investments supported by marketing programs to continue the growth momentum,” Pepsi said in a statement.
It spent some P4.2 billion on manufacturing and distribution assets, or about 8 percent higher versus expenditure in 2014.
In the fourth quarter alone, revenue rose by 7 percent.
Gross sales increased by 8 percent to P32.07 billion from P29.8 billion.
Despite a steep increase in sugar prices during the second half of 2015, the company managed to grow its beverage profits for the full year, said Kurgan Ahmed Syed, president of Pepsi Philippines.
“I am proud of what our team managed to accomplish in a very challenging year. This is a clear demonstration of the exceptional progress we have made as an organization, particularly on revenue management and driving cost productivity,” Syed noted.
“2015 was a special year for us. We began commercial production of our globally acclaimed snack food brands. The introduction of Lays and Cheetos at affordable price points opens up exciting new growth horizons for (the company).
“On the other hand, our beverage business performance also remains solid as we managed to outgrow the industry for yet another year,” he added.
The company started domestic production of Cheetos during the fourth quarter.
I t also started constructing a new factory line Light Industrial Science Park in Cabuyao, Laguna in March 2015.
“We are well positioned to be a leading food and beverage company in the Philippines and we are bullish about the future of our business. We will continue to build our Food and Beverage portfolio and invest in accelerating our future growth,” the company said.