MUNTINLUPA, PHILIPPINES, 11 May 2018 - Pepsi-Cola Products Philippines Inc. (PCPPI) posted Net Sales of P30.3 billion in 2017, in line with a strong 2016, a year which was influenced by election-related spending.
Productivity initiatives contributed to Gross margin expansion while one-time charges related to the Tax Reform for Acceleration and Inclusion (TRAIN) Law were booked in 2017.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) stood at a healthy P3.8 billion in 2017, growing at a compounded annual rate of 8% over the last five years. EBITDA margin continues to be solid at 13% of Net Sales.
As a sign of consistent commitment towards shareholders, the Board of Directors of PCPPI has approved dividend payout consistent with past years.
Investing for future growth, the company’s capital expenditure in 2017 amounted to P3.7 billion bringing total investments the last five (5) years to P19.5 billion.
Distribution gains were delivered on several key brands leading to an impressive 61% distribution level for carbonated soft drinks (CSD). The non-carbonated portfolio continues to be a strong suite for PCPPI with powerful brands like Gatorade and Sting complementing the CSD portfolio.
To develop further its portfolio in the Philippines, PCPPI has launched in the second half of 2017 two globally successful brands ie Aquafina and G-Active. In addition to the encouraging performance of the beverage portfolio in 2017, PCPPI also saw strong growth in its newly commenced Snacks operations, represented by its flagship brand Cheetos.
In sustaining internal growth, PCPPI maintained its focus on its people by creating a values-based culture anchored on strict adherence to the company's Code of Conduct. Opportunities for growth and development were actively provided to employees—the company's key enabler for future growth.
The company also sustained its commitment to be a responsible corporate citizen through sustainable initiatives targeted toward positively changing communities for the future. PCPPI actively engaged in employee-welfare and community activities through MyShelter Foundation’s Liter of Light program and the nationwide Brigada Eskwela drive. These programs focus on providing communities with sustainable light sources and making public school classrooms conducive to learning.
2017 also saw PCPPI launching an improved set of Environment, Health, and Safety policies. Awareness campaigns and training activities were intensified, allowing the company to achieve a significantly low overall Lost Time Incident Rate (LTIR). Along with this, efforts to conserve water and energy in each plant has been accelerated, while their capacity to responsibly manage air and water pollutants as well as solid waste products have increased. In the next three years, PCPPI will be rolling out initiatives to standardize energy and water use efficiency.
Further, PCPPI enabled increased productivity and efficiency in business processes by embracing digital transformation, committing investments in the implementation of an automated and fully integrated IT system. With this the company also ensured it is equipped with accurate, relevant and robust controls. These guided the business toward sustainable growth through the rigorous review of company Policies & Procedures while strictly monitoring compliance.