Manila, April 13 – 2014 proved to be another excellent year for Pepsi-Cola Products Philippines, Inc. (PCPPI) as it posted a double-digit increase in volume in the fourth quarter and 12% for the full year, driven by growth across major categories and geographies.

Gross sales revenue in the fourth quarter grew 13%, to P7.9 billion, making it the second quarter in a row where revenue growth was ahead of volume growth. Consequently, full-year gross sales revenue was up by 13%, to P29.8 billion, ahead of volume growth by 120 basis points, and gross profit increased by 6% versus last year to P6.3 billion.

“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”, stated Furqan Ahmed Syed, PCPPI President.

Effective cost management resulted in a reduction of operating expenses, as a percentage of net sales by 130 basis points in the fourth quarter and 30 basis points for the full year.

Though net income declined by 10% for the full year, on account of competitive pricing actions in the first half of 2014 as well as trickle over the impact of Typhoon Yolanda, net income for the fourth quarter was up 56%, making it the second quarter in a row of double-digit net income growth and ahead of gross revenue growth. Thus, a strong turnaround was evident in the second half of 2014 versus the first half, driven by 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”, shared Jika Dalupan, PCPPI VP for Corporate Affairs and Communications.

The company will continue with its long-term strategy of distribution and manufacturing investments supported by marketing programs to continue its growth momentum.