Pepsi Philippines says Q2 profit drops 11 pct
MANILA, Philippines - Pepsi-Cola Products Philippines Inc (PCPPI) reported its net income fell by 11 percent to P344 million in the second quarter of 2014, despite higher sales volume.
PCPPI, exclusive bottler of PepsiCo beverages in the Philippines, attributed its lower net income to competitive pricing, higher depreciation/amortization and increased operating expenses.
However, the company said its sales volume increased by 11 percent in the second quarter. Gross revenues jumped 11 percent to P8.3 billion in the April to June period.
"A double digit topline growth is a commendable feat, considering a sluggish and highly competitive soft drinks industry," Furqan Ahmed Syed, PCPPI president, said.
Jika Dalupan, PCPPI vice president for corporate affairs and communications, said the company continued to feel the effects of super typhoon "Yolanda" which hit the Visayas region last November.
"The damage caused by Typhoon Yolanda continued to dent our profitability, however, its impact is lower than in the first quarter. Despite these challenges, the company will continue with its long term strategy of distribution and manufacturing investments supported by marketing programs to continue our growth momentum," Dalupan said.
PCPPI increased its investments in manufacturing and distribution assets to P861 million for the quarter.
However, cost of goods sold went up 14 percent, while operating expenses also rose 10 percent in the second quarter.
"Overall, our second quarter performance were in line with our expectations," Syed said.
PCPPI recently launched new products include Gatorade Green Fury, featuring Argentinian soccer star Lionel Messi, and Mountain Dew Neon.