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US: Dr Pepper Snapple Group continues with rising profits, falling sales in Q3

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Dr Pepper Snapple Group has reported a healthy lift in profits for its third quarter, despite a dip in sales for the period.

The US-based soft drinks firm said today (5 November) that net profits for the three months to the end of September totalled US$151m, compared to $106m a year earlier. Sales were down, however, by 4% to $1.43bn.

Operating profits also held up, rising to $272m from $213m.

For the nine months of 2009 so far, net profits are up to $441m from $309m in 2008, with sales down by 4% to $4.18bn, from $4.33bn. Operating profits are running at $834m, an increase on the $668m for the first nine months of last year.

"While the economy is showing some signs of recovery, it's still too early to see this translate into higher beverage sales," said company president and CEO, Larry Young. "For the quarter, liquid refreshment beverage trends remained negative."

DPSG said it expects full year net sales to be down by between 3% and 4%. In September, however, the company had forecast a rise in sales for the year of between 2% and 4%.

Despite the lowering of sales expectations, full-year reported earnings per share are expected to be in the $2.12 to $2.16 range, thanks to lower packaging and ingredient costs and continued strong marketplace and productivity office investments. This compares more favourably to the $2.03 to $2.11 range forecast two months ago.

"A year and a half into our life as a public company, we're proud of what we have accomplished so far," Young concluded. "Our priorities and strategies remain unchanged and continue to support long-term sustainable growth."

To read DPSG's full announcement, click here.

For the company's second-quarter and half-year results, click here.


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