Pepsi Cola earns 6% more on higher sales

 Economy
Apr 162014
 

MANILA, Philippines – Higher sales volume allowed beverage maker Pepsi-Cola Products Philippines Inc. (PCPPI) to post record earnings last year.

In a disclosure to the stock exchange, PCPPI said its net income rose six percent to P903.5 million million last year on “high volume growth, stable cost of inputs and manageable operating expenses.”

Gross sales revenue jumped 16 percent to P26.4 billion, driven by high turnover growth from both the carbonated and non-carbonated beverages segments. Sales volume grew 20 percent last year.

“Our focus on increasing our distribution across the country has been a key driver of our top-line growth,” said PCPPI president Partho Chakrabarti.

He said the company outperformed the industry growth anew in 2013.

Cost of sales, mainly driven by volume growth, climbed 16 percent last year. It consists predominantly of raw and packaging materials that accounted for 73 percent of net sales, PCPPI said.

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PCPPI’s gross profit hit P6 billion last year, up 13 percent year-on-year.

“This achievement is commendable considering intense competition and the challenges brought about by Super Typhoon Yolanda. We experienced some setbacks since our plant in Tanauan was badly affected,” said Jika Dalupan, PCPPPI vice-president for corporate affairs.

PCPPI said operating expenses, despite the high capital expenditures, remained manageable. It accounted for 21 percent of net sales.

The beverage maker will invest P3.5 billion this year to continue expanding its production and distribution line as demand is expected to rise further.

It is also introducing more non-carbonated drinks this year to sustain its double-digit sales growth.

PCPPI is the exclusive bottler of PepsiCo beverages in the Philippines that include Pepsi-Cola, Mountain Dew, Seven Up, Mirinda, Gatorade and Sting.

The firm is partly owned by Lotte Chilsung, one of the biggest beverage companies in South Korea. It has established manufacturing facilities across the country, serving at least 500,000 outlets and providing employment through its extensive distribution network.

Local Pepsi unit reports 12% income growth

 Economy
Nov 142013
 
Local Pepsi unit reports 12% income growth

MANILA, Philippines – Higher sales volume in the third quarter allowed beverage maker Pepsi-Cola Products Philippines Inc. (PCPPI) to sustain growth in its earnings this year. In a disclosure, PCPPI said third quarter net income rose nearly three percent to P122.8 million from P119.33 million a year ago as volume climbed 20 percent. For the January to September period, its profit gained 12 percent to P780.7 million from P696 million given the 21-percent increase in sales volume. “This achievement is considered remarkable in the face of intense competition. The rainy months of the third quarter is normally off-peak for the beverage players but we managed to overcome this and outperformed the industry for yet another quarter,” said PCPPI president Partho Chakrabarti. Gross sales revenues, buoyed by high volume across major brands and categories like colas, jumped 16 percent to P6.1 billion in the third quarter and rose 17 percent to P19.4 billion in the nine-month period. “The outstanding volume performance was built on solid ground as the company increased distribution by continuously investing in marketing and distribution assets such as trucks, power coolers, vending machines and glass containers,” PCPPI said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Operating expenses, which increased 12 percent in the third quarter and 16 percent in the nine-month period, remained manageable despite high capital expenditures, the company said. “The company managed to improve income from operations by 12 percent for the quarter and 16 percent for the nine-month period despite increased spending for Read More …

Pepsi focuses on building an atmosphere of trust

 Economy
Oct 122013
 
Pepsi focuses on building an atmosphere of trust

MANILA, Philippines – Pepsi Cola Products Philippines Inc.  (PCPPI) president Partho Chakrabarti has underscored “building an atmosphere of trust” in the company’s employer-employee relationship as a key factor in PCPPI’s continuing growth in the highly competitive soft drinks industry. Speaking at the recent Towers Watson Talent Management Summit in Makati City, Chakrabarti shared Pepsi’s experience in maintaining high employee satisfaction and engagement ratings based on annual surveys conducted by Towers Watson. The survey results showed PCPPI registering 91 percent for employee alignment with goals and objectives, 86 percent for values formation, and 89 percent for communication. Chakrabarti identified three “strategic imperatives” used in Pepsi’s employee empowerment program: communicating constantly and meaningfully; setting  the tone with inspired leadership; and  getting the people excited about their role in the company. Pepsi’s dramatic growths over the past years have been largely attributed to personnel-oriented initiatives generated by its Organizational Development Unit. With the view of transforming PCPPI into a globally competitive company, Chakrabarti believes in arming the company’s 3,000-strong workforce with entrepreneurial skills necessary to survive in a borderless economy.