Softdrinks maker Pepsi-Cola Products Philippines Inc. said Tuesday net income in 2015 stood flat at P810 million, on higher sugar prices and increased expenses when it diversified into snack foods.
PCPPI said in a filing with the stock exchange gross revenues increased 7 percent in 2015 to P27.33 billion from P25.35 billion in 2014.
Revenue growth was ahead of volume expansion, driven by a strong focus on revenue management and overlapping of pricing rollback, it said.
Sales of carbonated drinks rose 7.8 percent last year to P20 billion from P18.56 billion in 2014, while sales of non-carbonated beverages also increased 7.8 percent to P7.29 billion from P6.76 billion.
Cost of goods climbed 10 percent in 2015, driven by sharp increase in sugar in the last two quarters, higher depreciation and amortization, which was partially offset by volume growth.
PCPPI started commercial production of snacks in 2015.
PCPPI said the creation of the snacks-and-beverage franchise operations in the Philippines reflected the group’s ongoing drive to ensure the integration of its food and beverage portfolio across multiple platforms, including manufacturing and go-to-market execution.
“2015 was a special year for PCPPI. We began commercial production of our globally acclaimed snack food brands. The introduction of Lays and Cheetos at affordable price points opens up exciting new growth horizons for PCPPI. On the other hand, our beverage business performance also remains solid as we managed to outgrow the industry for yet another year,” PCPPI president Furqan Ahmed Syed said.
“We are well positioned to be a leading F&B company in the Philippines and we are bullish about the future of our business. We will continue to build our food and beverage portfolio and invest in accelerating our future growth,” Syed said.
PCPPI said it invested P4.2 billion in manufacturing and distribution assets last year, up by 8 percent from a year ago.
The company said it would continue its long-term strategy of distribution and manufacturing investments, supported by marketing programs to sustain the growth momentum.
The PCPPI is a licensed bottler of PepsiCo Inc. and Pepsi Lipton International Ltd. in the Philippines.
It manufactures a range of carbonated and non- carbonated beverages that included Pepsi-Cola, 7Up, Mountain Dew, Mirinda, Mug, Gatorade, Tropicana/Twister, Lipton, Sting, Propel, Milkis and Let’s Be.