US: Dr Pepper Snapple Group dips in Q2 but future is brighter - analysts

By | 27 July 2012

Dr Pepper Snapple Group is in line for a Q3 Snapple boost, say analysts

Dr Pepper Snapple Group is in line for a Q3 Snapple boost, say analysts

Dr Pepper Snapple Group's Q2 sales volumes dipped under expectations, but analysts are remaining optimistic about full-year results.

The Texas-based soft drinks maker posted a 2.1% drop in H1 net profit, with net sales climbing 2.4% yesterday (26 July). But although Q2 bottler case sales fell by 1%, analysts Stifel Nicolaus said the company will soon bounce back helped by Snapple sales and easier comparables.

“Noncarbonated volume is likely to return to positive in 3Q (third quarter) after declining mid single-digits for the last year,” the anlysts said in a note. “Snapple's laps ease considerably in Q3, and the company laps double-digit percentage price increases in juices in Q3.”

Meanwhile, analysts Bernstein Research praised DPSG's expense control, as operating margins came in higher than expected, despite low gross margins and increased marketing costs.

DPSG CEO Larry Young said yesterday the company will increase marketing by US$15m this year compared to last year, and add a further US$15m next year.

Young also told investors he is “cautiously optimistic” on future growth.

Sectors: Company results, Soft drinks

Companies: Dr Pepper

View next/previous articles

Currently reading -

US: Dr Pepper Snapple Group dips in Q2 but future is brighter - analysts

There are currently no comments on this article

Be the first to comment on this article

Related articles

US: Senators reignite energy drinks producers probe

Two US senators have stepped up their scrutiny of energy drinks by writing to 14 producers demanding information on their products.

Preview of the Year - 2013 - Part I: Soft Drinks

As we welcome in the new year, we invite Euromonitor to cast its eye over what 2013 holds for the drinks industry. In the first part of this month's management briefing, the global market research and analysis provider looks at the soft drinks category.

just the Round-Up - The week in drinks

The top ten stories published on just-drinks last week:

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page