US: Q2 sales stay down, but profits rise at Dr Pepper Snapple Group

Dr Pepper Snapple Group has posted a lift in net profits for its second quarter, despite a slight dip in sales.

The US-based soft drinks company said today (13 August) that net profits in the three months to the end of June totalled US$158m, versus $108m a year earlier. Sales were down to $1.48bn, however, compared to $1.55bn.

Operating profits rose slightly in the quarter, to $297m from $269m.

For the first half of 2009, net profits climbed to $290m against $203m in the same period in 2008. Sales were down, hitting $2.74bn compared to $2.84bn.

Half-year operating profits totalled $562m against $455m.

Dr Pepper Snapple Group (DPSG) primarily blamed the loss of Hansen product distribution last year for the dip in sales.

"Our results continue to show the strength of our brands and the flexibility of our balanced routes to market," said company president and CEO Larry Young. "Despite a challenging macroeconomic backdrop, each of our segments posted solid net sales gains, grew liquid refreshment beverages value share and added new points of distribution.

"Our continuous improvement mindset and strong cost control focus, coupled with better than expected input costs, resulted in double-digit growth in segment operating profit on a comparable, currency neutral basis.

Going forward, the company said it continues to expect full-year net sales to be down by between 2% and 4%. Excluding the loss of Hansen product distribution and on a currency neutral basis, DPSG continues to expect net sales to grow 2% to 4%.

Stripping out net gains recorded in the first quarter related to distribution agreement changes, the company now expects full-year 2009 earnings per share in the $1.88 to $1.96 range. This reflects an $0.18 per share net increase from the previous guidance.

For DPSG's official release, click here.

For DPSG's Q1 results, click here.

An update, following the company's results conference call, appears here.