Listed beverage maker Pepsi-Cola Products Philippines Inc. (PCPPI) has set a P3.5-billion capital expenditure this year after fully utilizing its more than P4-billion capital expenditure (capex) in 2013, basically for expansion.
Partho Chakrabarti, president of PCPPI, told reporters on Tuesday that the company may spend a little less than what it spent in 2013, albeit on the same level mainly just to grow the company’s capacity and distribution. According to him, the company targets to keep it yearly spending on the same P3-billion to P4-billion level.
“For this year, [our capex is]P3.5 billion. It is lower, probably just to establish new lines, grow capacity and distribution,” Chakrabarti said, specifying that PCPPI is targeting 20-percent growth in its annual capacity.
In 2013, the company had more than P4 billion approved for its capex, and half of this was allocated for the expansion of its manufacturing site.
“More than 60 percent of the P4 billion is for expansion and the remaining 40 percent is on the regular distribution and other things,” the company’s top official said.
Chakrabarti said that as for manufacturing sites, PCPPI has expanded in Batangas, Muntinlupa, Cebu and Davao.
For the third quarter of 2013, PCPPI reported a net income of P122.8 million, while for the nine-month period to September, it earned P780.7 million. The company also delivered a strong finish to the third quarter of the year, with volume growth at 20 percent for the quarter and 21 percent for the nine-month period.
Asked if the company was able to sustain the level of growth for full-year 2013, Chakrabarti only said, “Generally, not specifically, despite [the]typhoon, we’ve done very well.”
He added that the company is optimistic that it can hit double-digit growth this year.
“It’s cold. That’s not good for our business. But I believe 2014 will also be a good year partly because in 2013, because it’s election
year, the industry didn’t spike that much. Normally, a year after the election tends to be a little lower and I don’t think that will happen in 2014. In 2014, we will have good economic growth and the beverage industry is expected to grow in line with the economy and we hope to do better than that,” Chakrabarti further said.