Pepsi-Cola Products Philippines, Inc. (PCPPI)—the exclusive manufacturer of PepsiCo beverages in the country—posted strong financial performance in 2021, which further highlighted the company's sustained recovery and operational resilience.
During the recently held stockholders’ meeting, Frederick D. Ong, president and CEO of PCPPI, reported that the company grossed P32.8 billion in revenue and P3 billion in EBITDA or earnings before interest, taxes, depreciation, and amortization in 2021.
PCPPI’s net revenue realizations also soared to 3.5%. This attributes to a better portfolio mix and cost containment, especially of its fixed cost. Its operating expenses narrowed by 3% while its capital expenditure spend ran short of its initial target.
“Overall, we delivered good 2021 results, thanks to the entire PCPPI team for their hard work, dedication, and openness to welcome new ways,” said Ong.
Strong brand performance
PCPPI improved its market share and distribution efforts. This resulted in stronger brand performance. “Our first quarter volume surpassed the total sales of 2021 and 2019 pre-pandemic level. Our leading brands Mountain Dew and Sting hit a remarkable growth versus previous year,” said Ong.
Sting also saw distribution improvements for single-serve PET and multi-serve PET.
PCPPI also reported cautious optimism due to the strong 2022 start. The company “sustained the momentum as it made a 2022 fast start for both carbonated soft drinks and non-carbonated beverages” but sees the huge challenge of increasing commodity prices for the year.
PCPPI also announced that it is bringing back the berry-flavored Pepsi Blue to stores this year.
PCPPI’s focus on improving the efficiency in its returnable glass bottles (RGB) and PET (also called polyethylene terephthalate) lines not only increased productivity savings last year but even exceeded its targets.
“PCPPI is committed to drive efficient, quality, and safe operations. We are moving forward with our strategic investment to expand our carbonated softdrinks (CSD) PET lines,” said Ong.
Its newest Southern Tagalog Regional Office (STRO) CSD-PET line is currently at 92% performance. This line became operational in February 2021 in response to the growing PET market. The company is also working on the next facility that will be capable of producing more PET to serve this growing segment of the market.
PCPPI also initiated various transformative projects to future-proof the company. It completed the design and implementation of its organizational transformation. PCPPI also launched a project meant to optimize its network and operational routes.
The company also ramped up its digital agenda to improve working practices and quality. They also launched a more robust time and attendance recording. It also rolled out an information security plan to maintain the integrity of its information and system.
PCPPI embarked on an organizational transformation journey to further develop its talents, drive performance and engagements, and broaden the ICARE culture of the company.
Some of its priorities include developing a standardized organizational model. The company is also recalibrating performance review and promotion process. It continues strengthening its campaign to promote, educate, and instill PCPPI’s core values among its employees.
It also launched a Learning Management System called Quick Leadership Know-how. This aims to further upskill its employees by providing them digital resource library, training platform, and on-demand learning sessions.
The company’s successful execution of these programs merited recognition in the Golden Globe Tiger Awards. PCPPI was given awards under the categories ‘Best Change Management Initiative’ and ‘Excellence in Production of Learning Content.’
“We look forward to reaping the benefits of our transformation journey this 2022. In collaboration with Lotte and PepsiCo, we will further work towards achieving our mid- and long-term profitable growth and ultimately realizing our vision to be the leading beverage company in the country,” Ong said.
PCPPI embraced its commitment to sustainability. It recognizes the creation of long-term value for local communities and society, and fosters company longevity.
In 2021, PCPPI recycled as much as 182,000 cubic meters of water. It also reduced its plastic footprint through packaging innovation and material light-weighting.
Driven by its deep sense of volunteerism, PCPPI was also among the first companies to provide relief to the victims of Typhoon Odette. It also took part in various clean-up drives and tree planting activities in different places in the country.
PCPPI also remained a trusted partner of the Department of Education. They deliver supplies to different schools nationwide and hold online capacity-building activities for faculty and staff during the annual Brigada Eskwela.
“Our 2021 performance is a testament to how we courageously rose from the impact of the pandemic. COVID-19 challenged the business and abruptly challenged the market landscape. Yet, we did not stand down. We were quick to respond, adapt, and think ahead to guard the sustainability and profitability of the business,” said Ong.