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.
Dr Pepper Snapple Group formed after the company was spun off from its parent Cadbury Schweppes in 2008. It brings together the former Dr Pepper/Seven Up Inc, Snapple Beverage Group, Mott’s LLP and Be...
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