• Net profits in Q1 fall by 10.5% to US$102m
  • Sales in three months to end of March inch up by 2.3% to $1.36bn
  • Operating profits dip by 5% to $192m
  • FY net sales guidance targets "low end of long-term 3% to 5% range"
Dr Pepper Snapple Group issued its Q1 numbers today

Dr Pepper Snapple Group issued its Q1 numbers today

Dr Pepper Snapple Group has posted a marked fall in first quarter net profits, with sales delivering a smaller rise than the previous quarter.

The US-based soft drinks company said earlier today (25 April) that net profits in the three months to the end of March decreased by 10.5% year-on-year, coming in at US$102m. Sales, which rose by 3.5% in the final quarter of 2011, were up by only 2.3% in Q1 at $1.36bn.

Operating profits slipped by 4.95% to $192m, with volumes decreasing by 1%.

DPSG said that the benefits it felt from higher sales and productivity improvements were "more than offset" by higher packaging and ingredient costs, other operating cost increases and higher marketing investments.

“Despite expected commodity headwinds and higher pricing across our CSD brands ... our business continued to perform well in the quarter, and consistent with our expectations," said president & CEO Larry Young. "With solid marketing plans in place for the remainder of the year and Rapid Continuous Improvement (operations strategy) further expanding across the organisation, I remain confident in our plans for the year.”

For the full-year, DPSG said it "continues to expect" a rise in net sales "near the low end of its long-term 3% to 5% range". Core EPS are forecast to come in between $2.90 and $2.98.

To read DPSG's official Q1 announcement, click here.