PEPSI-COLA Products Philippines Inc. (PCPPI) said net income in the first nine months of the year grew 14 percent to P706 million from P619 million a year ago on improved productivity and efficiencies and a modest increase in revenues.
Revenue in the nine months climbed 8 percent to P20.1 billion from P18.6 billion in the same period last year on growth in its major product categories, driven by its strong focus on revenue management.
For the third quarter alone, PCPPI booked P146 million net income, up 5 percent from P138 million a year ago. Third quarter revenues rose 6.6 percent to P6.53 billion from P6.12 billion previously.
“Our year-to-date performance can be attributed to the company’s strong focus on driving productivity and building revenues in a very challenging operating environment. The quarter saw a sharp increase in sugar prices coupled with very challenging industry pricing. Despite that, we managed to grow our top line [revenues]and bottom line [net income]for the quarter,” PCPPI president Furqan Ahmed Syed said in a statement.
“Our net income margin has expanded by 18 basis points year-to-date. This is a fruitful outcome of the company’s drive to foster efficiency in our operations,” he added.
Cost of goods sold went up by 9 percent, while operating expenses increased by 4.1 percent — both in the first nine months of the year.
PCPPI said it already spent P3.24 billion in capital expenditures (capex) so far this year. Actual capital spending last year amounted to P3.07 billion.
Capex was poured on the company’s ongoing corporate expansion projects, particularly purchasing property, plant and equipment, as well as bottles and cases for expansion.
Recently, PCPPI launched Gatorade White Lightning and carbonated juice drink Tropicana Frutz, further strengthening its line-up in the light refreshment beverage category.
Last May, the company announced that it will make and distribute a range of PepsiCo’s popular snack products and flavors to the Philippines. PCPPI said this move is expected to take effect in manufacturing operations by the latter part of the year.
PepsiCo’s well0known snack food brands include Cheetos, Lays, Ruffles, Tostitos, Doritos, Fritos and Walkers.
Incorporated in 1989, PCPPI is engaged in the manufacture, sale and distribution of carbonated and non-carbonated beverages of brands such as Pepsi-Cola, 7Up, Mountain Dew, Mirinda, Mug, Gatorade, Lipton, Tropicana/Twister, Propel and Sting.