US: Dr Pepper Snapple Group sees YTD profits edge up
- Nine-month net profits up 2% to US$468m
- Net sales in nine months to end of September flat at US$4.5bn
- YTD operating profits fall 2.3% to US$782m
- Full-year net sales expected to be flat
The group expects challenges ahead in the CSD category
Dr Pepper Snapple Group (DPS) has seen a return to net profits growth in its year-to-date, but warned that the market remains “extremely challenging”.
The Texas-based group said today (23 October) that its net profits in the nine months to the end of September rose by 2% year-on-year to US$468m. Sales in the period were flat at $4.5bn, while operating profits fell by 2.3% to $782m on the prior year. Volumes in the nine months were down 3%.
The results come off the back of a slide in net profits for the company in its first half of 2013.
In the third quarter, net profits increased by 15.6% to $207m, as sales edged up by 1% to $1.54bn. Operating profits in the three months fell by 2.6% to $300m. Volumes dropped by 1% in the quarter.
“We continue to operate in an extremely challenging environment, with significant pressures in the CSD category now impacting both regular and diet products,” said DPS president & CEO Larry Young.
However, he said the group continues to “gain volume share while holding value share in the CSD category”.
Young also suggested that DPSG's low-calorie TEN products are bringing consumers back to the CSD category.
Looking ahead, the group said it expects full-year net sales to be flat. Core EPS (earnings per share) for 2013 is forecast to be between $3.04 and $3.12.
Share in DPS were today trading up 0.61% at $45.65 on the New York Stock Exchange.
To read the company's full statement, click here.
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