Year-to-date, the company reported earnings of $1.09 per diluted share compared to $1.14 per share in the prior year period. Excluding a separation-related foreign deferred tax charge in the current year and a net gain on certain distribution agreement changes in the prior year, the company earned $1.14 per diluted share compared to $0.99 in the prior year-to-date period.
For the quarter, sales volume increased 1% on solid branded sales growth. Contract manufacturing reduced sales volume growth by one percentage point as the company continued to de-emphasise this business.
Net sales increased 3%, reflecting sales volume growth, foreign currency benefits and revenue recognised under the PepsiCo licensing agreements. Favourable pricing trends in beverage concentrates were offset by increased promotional activity in packaged beverages.
Segment operating profit (SOP) increased 5% reflecting net sales growth and supply chain efficiencies offset by a $12m increase in marketplace investments, as well as increased productivity office costs. Reported income from operations was $310m compared to $297m in the prior year period.
DPS president and CEO, Larry Young, said: “While we continue to see some signs of economic stability, consumer confidence remains weak. Investing behind our brands, driving traffic for our customers and delivering value to our consumers are still a must-do for us. Our portfolio of preferred flavoured CSDs, teas and juices continues to do well despite macroeconomic headwinds and a changing beverage landscape. For the quarter, we continued to see solid consumer takeaway and we gained value share across the portfolio.”
Source: Dr Pepper Snapple Group
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