PHILIPPINES: Pepsi-Cola Products Philippines' H1 profits soar 436%

• Net profits surge by 436% in six months to end of June compared to the same period last year
• Net sales rise by 15%
• Operating profit climbs about 540%
• Profit jump down to better price mix, company says

Pepsi-Cola Products Philippines (PCPPI) has posted a 436% rise in its first-half profits, fuelled by strong cola growth. 

Net profits raced to PHP578m (US$13.8m) from PHP107.7m (US$2.57m) in the six months to the end of June, the company announced in a filing with the Philippine Stock Exchange. Operating profits jumped about 540% from PHP150m (US$3.6m) to PHP806.7m (US$19.2m).

The big surge in profits came on the back of a more modest net sales increase of about 15%. PCPPI said its strong performance was down to a better pricing and sales mix and an eight percentage point reduction in cost of goods compared to a year earlier.

“This remarkable achievement was fuelled by outstanding performance across brands and categories, particularly in the cola segment where we registered strong growth,” PCPPI president Partho Chakrabarti said.

In September 2010, Lotte Chilsung Beverage Co bought a controlling stake in PCPPI. Lotte Chilsung has held the Pepsi bottling licence in South Korea for 30 years.

PCPPI manufactures drinks including Pepsi, Mountain Dew, Tropicana and Gatorade in the Philippines.

To read PCPPI's official results announcement, click here.