Beverage News

DPS releases Q3 results

Net sales up 1 percent for quarter

October 24, 2013
/ Print / Reprints /
ShareMore
/ Text Size+

Dr Pepper Snapple Group Inc. (DPS), Plano, Texas, reported that its third quarter net sales increased 1 percent, reflecting 3 percentage points of positive mix and pricing partially offset by a 1 percent sales volume decline and higher discounts.

Reported segment operating profit (SOP) increased 5 percent, or $18 million, due to a year-over-year last in, first out (LIFO) benefit of $14 million, ongoing productivity improvements, a favorable adjustment to a previously disclosed legal provision, and lower people costs primarily driven by favorable costs associated with its insurance programs, the company says. These benefits were partially offset by commodity cost increases, principally in sweeteners, it adds.

Reported income from operations for the quarter was $300 million, including a $1 million unrealized commodity mark-to-market gain. Reported income from operations was $308 million in the prior-year period, including $18 million of unrealized commodity mark-to-market gains.

Year-to-date, reported net sales increased 1 percent, and reported income from operations was $782 million, including $13 million of unrealized commodity mark-to-market losses. Reported income from operations was $800 million in the prior-year period, including $18 million of unrealized commodity mark-to-market gains.

“We continue to operate in an extremely challenging environment with significant pressures in the [carbonated soft drink] (CSD) category now impacting both regular and diet products,” said DPS President and Chief Executive Officer Larry Young in a statement. “Against this backdrop, our teams remained committed to executing our strategy, and we continued to gain volume share while holding value share in the CSD category.

“We’ve continued to invest in our brands for their long-term success, and I’m encouraged at this early date with the performance of our Core 4 Ten platform as research tells us that it is bringing consumers back to the category,” he continued. “Rapid continuous improvement continues to drive meaningful results and is enabling us to build an improved operating platform. With our portfolio of consumer-loved brands, our strong execution focus, and our continuous improvement mindset, I am confident we can deliver our profit goals for 2013.”

For the quarter, bottler case sales volume was flat with CSDs, and non-carbonated beverages (NCBs) declined 1 percent.

In CSDs, Dr Pepper volume decreased 1 percent as the CSD category continued to face significant headwinds. The company’s Core 4 brands, which include its Ten platform, were flat as a high-single digit increase in Canada Dry was offset by mid-single digit declines in 7UP and Sunkist sodas and a low-single digit decrease in A&W. Peñafiel increased double-digits, but Crush and Sun Drop both experienced high-single digit declines. Fountain foodservice volume was flat, cycling 2 percent volume growth in the prior-year period.

In NCBs, Hawaiian Punch volume declined 6 percent. This decline was partially offset by a 4 percent increase in Snapple and a 1 percent increase in Mott’s.

By geography, volume in Canada and the United States declined 1 percent, and volume in Mexico and the Caribbean increased 6 percent.

 Did you enjoy this article? Click here to subscribe to Beverage Industry.  

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Dinner with Tequila Don Julio

Diageo is taking its Tequila Don Julio brand on the road this summer with a rolling Airstream Speakeasy mobile craft cocktail bar. The team stopped in Chicago on July 29 to share some specialty tequila cocktails paired with food from Chicago restaurants Honey Butter Fried Chicken and The Radler as well as dessert venues Black Dog Gelato and Baker Miller. (Photos by Jennifer Haderspeck)

9/17/14 2:00 pm EDT

The Path to New Product Success: Navigating the latest trends for new beverage development

By attending this webinar, you will learn about the top trends and how they fit into the CPG market, which channels are influencing new products and technology, how Packaging fits into your product development, and ways you can use innovation to increase sales.

Podcasts

Maintaining beverage dispensing equipment

Iuliana Nita, Saint-Gobain Performance Plastics global marketing manager of food and beverage, offers her insights about ensuring sanitary performance of beverage dispensing equipment in foodservice applications. She also will offer some tips about choosing the right kind of tubing to handle acidic beverages.

Beverage Industry Magazine

BI August 2014 cover

2014 August

The August 2014 Beverage Industry includes a cover story on KeVita, as well as articles about beverage consumers, natural and organic varieties, smart snacks, and more. Check it out today!

Table Of Contents Subscribe

Beverage Insider eNewsletter

Are you an Insider? Subscribe to Beverage Industry’s weekly e-newsletter to receive news headlines, new product information and magazine highlights.   

Best Beverage Categories

Which beverage category will perform the best in the second half of 2014?
View Results Poll Archive

THE BEVERAGE INDUSTRY STORE

cleaning-in-place-dairy-foo.gif
Cleaning-in-Place: Dairy, Food and Beverage Operations, 3rd Edition

This book addresses the principles of cleaning operations, water supply issues and the science of detergents and disinfectants.

More Products

Webinars

Beverage Industry Webinars are an easy, effective and convenient way to get educated and informed on the latest industry trends and topics. All Webinars are FREE unless indicated. For more information, check out our Events page!

STAY CONNECTED

facebook40 twitter    youtubelinkedgoogle+ icon 40px