PCPPI posts 20% income fall to 619M

Pepsi- Cola Products Philippines, Inc. (PCPPI) reported a 20 percent drop in attributable net income to 619.39 million in the first three quarters of 2014 from the 780.75 million it earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, PCPPI said net income for the nine-month period is still behind the year-ago level as a result of higher depreciation and amortization as well as damages caused by Typhoon Yolanda.

However, net income for the third quarter grew by 13 percent to 139 million, coming from a strong topline growth. PCPPI said it posted a 17 percent volume growth in the third quarter and 12 percent more for the nine-month period this year.

Fuelled by strong demand across major categories and geographies, gross sales was up by 19 percent for the quarter due to combination of volume and revenue initiatives and by 13 percent for the nine-month period to 22 billion.

“Sustained investments in manufacturing, marketing & distribution assets, paved the way for the company’s topline performance,” PCPPI vice president for Corporate Affairs and Communications Jika Dalupan.

Gross profit was up by 17 percent for the quarter and 4 percent for the ninemonth period, amounting to 4.6 billion. Operating expenses as a percentage of net sales were at par with year-ago level for the nine-month period.

“We are pleased to have sustained our strong growth momentum in the third quarter. This was achieved by bringing in more exciting consumer offerings for our Filipino consumers, building our distribution footprint and sustaining our investments in operating capability development,” said PCPPI president Furqan Ahmed Syed.

He added that “we are proud to have been part of the Tanauan rehabilitation and rebuilding process. Our plant operations in Tanauan are fast coming back to normal.” (JAL)