Softdrinks manufacturer Pepsi-Cola Products Philippines Inc. said Monday net income grew 8.4 percent in the second quarter to P399.8 million from P368.3 million a year ago, on higher sales volume.
PCPPI said second-quarter net sales increased 15.4 percent to P8.53 billion from P7.39 billion in the same period last year, despite higher sugar prices.
“We are delighted that despite high sugar prices, our beverage team was able to deliver a double-digit profit growth for the quarter. This was made possible by strong revenue management, a record increase in productivity, reduction in operating expenses and delivering a relentless focus on ‘fewer, bigger, better’. We are also very encouraged by the initial roll-out results of our snack Foods business and we are excited about the growth prospects,” PCPPI president Furqan Ahmed Syed.
Cost of goods sold increased 17 percent in the second quarter, driven by sharp increase in sugar prices which was partially offset by significantly higher productivity.
Sales revenue grew 13 percent in the first half to P18.18 billion, on strong focus on revenue management and new product initiatives.
Carbonated softdrink contributed P13.3 billion to total sales while non-carbonated soft drinks generated P4.7 billion in revenues.
The group’s newly launched snack food business contributed P78 million in sales.
Meanwhile, the company continued to expand the footprint of its snacks portfolio by growing its distribution footprint to entire Luzon.
The company inaugurated its snacks manufacturing facility in Laguna as part of its long-term strategy to innovate the business and further diversify its product offerings by including global brand Cheetos to its roster.
PCPPI is the exclusive manufacturer of PepsiCo beverages & snacks in the Philippines.
