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Beverage NewsCarbonated Soft Drinks

DPS announces 2016 results

Net sales up 3 percent for the year

Beverage News
March 15, 2017

Plano, Texas-based Dr Pepper Snapple Group (DPS) announced that reported net sales were up for the fourth quarter as well as the year.

“I’m proud of our teams and the strong performance they delivered in 2016. In a continuously competitive environment, we remained focused on our integrated communication and execution strategies and unlocked growth across our priority brands,” said Larry Young, president and chief executive officer of DPS, in a statement. “We recently completed our acquisition of Bai, which will strengthen our priority brand portfolio and bring exciting innovation opportunities to the company. We also remained relentlessly focused on driving growth and productivity across our business with Rapid Continuous Improvement.”

For the quarter, reported net sales increased 2 percent on favorable product and package mix, a 1 percent increase in sales volumes and higher pricing. Net sales were partially offset by 1 percentage point of unfavorable foreign currency translation and unfavorable segment mix. Reported income from operations was $335 million for the quarter, which included $11 million in unrealized commodity mark-to-market gains and $3 million in expenses related to the acquisition of Bai Brands LLC.

For the year, reported net sales increased by 3 percent to $6.44 billion. Foreign currency translation negatively impacted reported net sales by 1 percent. Reported income from operations was $1.43 billion, including $52 million in unrealized commodity mark-to-market gains and $3 million in acquisition expenses related to Bai.

For the quarter, bottler case sales (BCS) volume was flat, with carbonated soft drinks (CSDs) increasing 1 percent and non-carbonated beverages (NCBs) decreasing 1 percent. By geography, U.S. and Canada volume was flat, and Mexico and the Caribbean volume increased 5 percent.

For the year, BCS volume increased 1 percent with both CSDs and NCBs increasing 1 percent. BI

KEYWORDS: beverage sales financial reports

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