Softdrink maker Pepsi-Cola Products Philippines Inc. said net income in 2014 declined 10.2 percent to P810.9 million from P903.4 million in 2013, mainly due to competitive pricing actions in the first semester as well as the trickle-down effect of super typhoon Yolanda.
PCPPI said in a filing with the Philippine Stock Exchange net sales rose 12.7 percent in 2014 to P25.32 billion from P22.46 billion in 2013. Operating expanses, however, increased 11 percent to P5.22 billion.
Net sales from the carbonated soft drinks business totalled P18.56 billion, up 13.8 percent from P16.3 billion, while net sales from non-carbonated beverages reached P6.7 billion, up 9.9 percent to P6.76 billion from P6.15 billion in 2013.
“This is a commendable feat, as it overlapped two consecutive years of strong double-digit growth amid a modestly-growing CSD industry and a continuously intensifying competitive landscape,” PCPPI said.
Gross sales in the fourth quarter increased 13 percent to P7.9 billion, the second quarter in a row that revenue growth was ahead of volume increase.
“These gains were made possible by the company’s relentless focus on expanding distribution, supported by significant investments in manufacturing and marketing and distribution assets amounting to P3.9 billion this year,” PCPPI said.
To maintain its position as one of the leading companies in the ready-to-drink, non-alcoholic beverage market, PCPCI said it would pursue its long term strategy of distribution and manufacturing investments, supported by marketing programs to sustain the growth momentum.
“For the years to come, the company will continue to expand its beverage offerings leveraging our wide manufacturing platform and extensive distribution reach to meet consumer demands,” PCPPI said.
PCPPI is a licensed bottler of PepsiCo Inc. and Pepsi Lipton International Ltd. in the Philippines.
It manufactures a range of carbonated soft drinks and non-carbonated beverages that include well-known brands Pepsi-Cola, 7-Up, Mountain Dew, Mirinda, Mug, Gatorade, Tropicana/Twister, Lipton, Sting, Propel, Milkis and Let’s Be.
The company also plans to venture into the snack food business with the establishment of a P650-million manufacturing facility set to be operational by the second half of the year.