Pepsi earnings dwindle 10% to P811 M in 2014

Earnings of beverage maker Pepsi-Cola Products Philippines Inc. (PCPPI) declined by a 10th last year due to competitive pricing actions in the first half of 2014 as well as the trickle over impact of Super Typhoon Yolanda.

In a regulatory filing, PCPPI said yesterday net income dropped 10 percent last year to P810.94 million from P903.47 million in 2013.

Profits in the fourth quarter alone, however, surged 56 percent year- on- year, making it the second quarter in a row of double-digit net income growth for the company, PCPPI said.

PCPPI attributed the strong turnaround in its second half performance to volume growth, improved pricing and leverage on operating expenses.

“These gains were made possible by the company’s relentless focus on expanding distribution, supported by prudent investments in capability and infrastructure development,” said Jika Dalupan, PCPPI vice president for corporate affairs and communications.

The listed beverage maker’s 2014 full year gross sales revenue improved 13 percent to P29.8 billion as volume jumped 12 percent year-on-year due to growth across major categories and geographies.

The company said effective cost management also resulted in a reduction of operating expenses last year.

“We are very pleased with the progress we have made during the year. We delivered strong topline growth amid a modestly-growing carbonated softdrinks industry and a continuously intensifying competitive landscape. We also made tangible progress on building operating capability that would future-proof our business and help us in delivering profitable growth in the years ahead,” said Furqan Ahmed Syed, PCPPI president.