US: Dr Pepper Snapple Q1 sales down, raises FY guidance

By | 18 May 2009

Dr Pepper Snapple has reported net sales down 3% for the first quarter of 2009, largely due to the loss of distribution deals for Hansen Natural's Monster Energy drink, but raised earnings guidance for its full-year.

Net sales fell to US$1.26bn, down from $1.29bn in the first three months of 2008, Dr Pepper Snapple said late last week.

Exlcuding the loss of distribution contracts for Monster, which passed to Coca-Cola Enterprises during the quarter, net sales rose by 4%, said Dr Pepper Snapple.

Net profits rose by 39% for the quarter to $132m, partially boosted by one-off payments from Hansen Natural to end the Monster distribution contracts.

The firm raised its earnings guidance for 2009 by $0.11 per share, to a range of $1.7 to $1.78, based on expected lower input costs, more favourable currency rates, cost savings and an improving market.

Net sales for the year are still expected to fall by between 2% and 4%, added the group, but it sounded a note of optimism on the US soft drinks market.

President and CEO Larry Young said: ""While the US economy remains weak, consumer sentiment appears to be improving and we're continuing to see a shift in purchase habits toward CSDs and other value offerings.

"Our portfolio of CSDs and value juices performed extremely well in the quarter, led by strong gains in Crush distribution and Hawaiian Punch and solid Dr Pepper and Core 4 growth.

"Pressure remains at the premium end of the portfolio, especially with Snapple. We're confident, however, that recent product and package changes coupled with strong marketing programmes will return this brand to growth toward the end of this year."

Sectors: Soft drinks

Companies: Dr Pepper, Coca-Cola Enterprises, CSDs

View next/previous articles

Currently reading -

US: Dr Pepper Snapple Q1 sales down, raises FY guidance

There are currently no comments on this article

Be the first to comment on this article

Related articles

US: DNA Beverage Corp partners with Star Racing Yamaha

DNA Beverage Corporation, makers of DNA Energy Drink, has announced an alliance with Star Racing Yamaha in a bid to maximise its market presence.

AUS: Voltz launches energy shot in Australia

Voltz International is to launch its Voltz energy shot health drink in Australia after appointing a distributor in the country.

US: Hansen Natural continues healthy 2009 in Q3

Hansen Natural has reported another quarter of rising profits and sales.

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