MANILA: Pepsi-Cola Products Philippines Inc. (PCPPI) reported a net income of P700 million in the nine months to September, up five percent on the back of strong sales as the company introduced new products.
In the third quarter alone, net income grew 23 percent to P200 million. Net of start-up losses of the snacks business, net income reached P800 million in the nine-month period and P200 million in the third quarter, equating to a growth of 14 percent and 42 percent versus year-ago, respectively.
Sales revenues reached P26.8 billion, representing a year-on-year growth of 13 percent. In the third quarter, sales revenues rose 14 percent to P8.7 billion. Revenue growth continued to outpace volume growth spurred by a strong focus on new product initiatives and revenue management, said PCPPI president Furqan Ahmed Syed.
“We are delighted by the fantastic results achieved in third quarter. This is another show of confidence by our consumers on our world-class product portfolio. Our consumers loved product innovations and campaigns such as Mountain Dew’s ‘Dewmocracy,’ Lipton’s ‘Positivitea’ and Tropicana’s ‘Straight to the Good Stuff,’ Syed said.
Cost of goods sold went up 15 percent for the nine-month period and up 14 percent in the third quarter primarily due to a sharp increase in sugar prices, the company said.
To mitigate the impact of higher sugar prices, PCPPI implemented improved productivity particularly related to line efficiencies, value engineering and water/ energy conservation initiatives. Moving forward, Syed said PCPPI remains optimistic about its growth prospects.
“We strongly believe in the future potential of Philippines as a country and our bond with the Filipino people keeps getting stronger with every passing day. We have evolved a compelling 10 year vision for the business and we will continue to transform PCPPI into a world class Food and Beverage organization of the future,” Syed added.
