• Stock to watch: Pepsi-Cola has new president

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    Emeterio Sd. Perez

    Emeterio Sd. Perez

    Ownership profile. Pepsi-Cola Products Philippines Inc. (PCPPI) is listed on the Philippine Stock Exchange. It is also a public company because the public owns 1.334 billion shares, or 36.11 percent, of 3.694 billion outstanding shares.

    The public ownership in Pepsi-Cola consists of the holdings of foreigners and Filipinos who own 794.653 million shares, or 21.510 percent, and 532.397 million PCPPI shares, or 14.410 percent, respectively, which are lodged with PCD Nominee Corp.

    In most cases, PCD Nominee acts as record stockholders for unnamed beneficial owners.

    PCPPI, the bottler of a global cola company, has two significant stockholders who, together, hold 2.360 billion shares, or 63.885 percent. Lotte Chilsung Beverage Co. Ltd. of Korea owns 1.436 billion shares, or 38.88 percent, while Quaker Global Investments B.V. of The Netherlands holds 923.443 million shares, or 25 percent. PepsiCo. Inc., according to a filing, is the ultimate parent of Quaker Global.

    New president. Pepsi-Cola Philippines may be controlled by a Korea-based company but its president is not an American, or Korean, or a Dutch or a Filipino.

    While its chief executive officer, Yeon-Suk No, is a Korean, Partha Chakrabarti, PPCPI president since 2010, is an Indian and his term ended April 1. His successor is a Pakistani who could also be of Indian descent based on the history of his country. Pakistan was part of India until it became a separate and sovereign state in August 1947.

    Jika Dalupan, vice president for corporate affairs and communications, disclosed in a statement the appointment by the PPCI board of Furqan Ahmed Syed “as president and member of the board.”

    The appointment took effect on April 1. Furqan, according to a statement, is bringing to PCPPI “18 years of well diversified experience.” More importantly, Furqan “is an FMCG specialist.” The four letters stand for “fast-moving consumer goods.”

    By the numbers. The performance of the former PCPPI president should be judged by the numbers. In 2010, his first year at the local Pepsi-Cola bottler, PIP (the company’s stock quote) averaged at P3.095, then slightly rose to P3.309 in 2011 and to P3.954 in 2012.

    Available filings showed PIP hit a high of P6.88 and a low of P5.85 in the first quarter of 2013.

    On March 31, Chakrabarti’s last day at Pepsi-Cola Philippines as president, the company’s stock opened at P4.82, the session’s low, peaked at a high of P4.94 and closed at P4.90. He left the company with market capitalization of P18.099 billion.

    PIP hit a 30-day high of P5.37 on March 4 after falling to a month-low of P4.35 on Feb. 18.

    Financials. As of Sept. 30, 2013, PCPPI had retained earnings of P5.567 billion and additional paid-in capital (APIC) of P1.197 billion. The company’s APIC resulted from an initial public offering of 1.142 billion shares at P3.50 per share.

    APIC refers to the amount in excess of par value, which, in the case of Pepsi-Cola Philippines, is P2.50 per share.

    In 2011, the first full year of Chakrabarti as president, PCPPI reported net profit of P289.047 million, which tripled—almost, anyway—to P844.005 million in 2012.

    In the first nine months of 2013, it posted net profit of P780.747 million, up 16.321 percent from P671.203 million in the same period in 2012. Said profit translates to earnings per share of P0.21, up from P0.18.

    Chakrabarti went back to India to assume the post of vice president and chief operating officer of PepsiCo India. Under him, PCPPI last paid dividend of P0.07 per share, or P258.564 million, on June 28, 2013.

    Will Furqan, the new president, equal or even outperform Chakrabarti with a performance that would drive PIP shares to a new high? Due Diligencer will be watching.

    esdperez@gmail.com

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