BOTTLER Pepsi-Cola Products Philippines Inc. on Monday said its net income declined by 10 percent last year, partly as a result of its competitive pricing actions done in the first half of the year amid a modest increase in carbonated soft-drink sector, but it recovered most of the losses during the latter part of 2014.
The company said in its report to the Philippine Stock Exchange that its net income slid to P810.94 million from the previous year’s P903.47 million.
“A strong turnaround was evident in the second half of 2014 versus the first half, driven by volume growth, improved pricing and leverage on operating expenses,” the company said.
It added that devastation caused by Supertyphoon Yolanda, which struck the country in 2013, also contributed to the weak performance during the first half of the year.
Its profit for the fourth quarter alone, however, grew by 56 percent due to the double-digit increase in sales volume.
The company, the licensed bottler of PepsiCo Inc. and Pepsi Lipton International Ltd. in the Philippines, said that its net sales for the period grew close to 13 percent to P25.32 billion from the previous year’s P22.46 billion.
Most of the sales came from carbonated soft drinks (CSD) at P18.56 billion, while some P6.76 billion came from noncarbonated beverages.
“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,” the company said.
“We are very pleased with the progress we have made during the year. We delivered strong topline growth amid a modestly growing CSD industry and a continuously intensifying competitive landscape. We also made tangible progress on building operating capability that would future-proof our business and help us in delivering profitable growth in the years ahead,” Furqan Ahmed Syed, the company’s president, said in a statement.
The company will continue with its long-term strategy of distribution and manufacturing investments supported by marketing programs to continue its growth momentum, it said.