The first half of 2016 saw the sales revenue of Pepsi-Cola Products Philippines, Inc. (PCPPI) grow by 13%, reaching P18 billion at the half-year mark. Revenue growth was ahead of volume growth, driven by strong focus on revenue management and new product initiatives.
“We are pleased by the strong topline momentum in the first half backed by powerful innovations and world class execution. Consumers loved our new innovations such as Mountain Dew Blue Shock, Mountain Dew Live Wire and Gatorade Fierce Green Apple” stated PCPPI President Furqan Ahmed Syed.
Cost of goods sold increased by 17% for the quarter and for the first half of the year, primarily driven by sharp increase in sugar prices which was partially offset by significantly higher productivity versus last year. This resulted to a net income increase of P31 million versus year ago for the quarter. Net of Snacks business start-up losses, the company’s net income grew 15% for the quarter. The company achieved a gross profit of P2.0 billion or +11% for the quarter and P3.6 billion for the first half of the year or +5% versus year ago.
Operating expenses expressed as a % of net sales were 118 basis points and 132 basis points better than year ago for the quarter and for the first half of the year respectively mainly due to prudent cost control. PCPPI plans to continue its growth momentum through distribution expansion, manufacturing infrastructure and capacity development, and product innovations.
Meanwhile, the company continued to expand the footprint of its Snacks portfolio by growing its distribution footprint in Luzon.
“We are delighted that despite high sugar prices, our beverage team was able to deliver a double digit profit growth for the quarter. This was made possible by strong revenue management, a record increase in productivity, reduction in operating expenses and delivering a relentless focus on ‘fewer, bigger, better’. We are also very encouraged by the initial roll-out results of our snack Foods business and we are excited about the growth prospects”, Syed added.
The company recently celebrated its 27th anniversary as a bottling entity, with 13 manufacturing facilities spread throughout the country, including the newly-inaugurated Snacks Plant located in Cabuyao, Laguna.