US: Dr Pepper Snapple Group H1 profits fall, sales flat
- First-half net profits drop 6.8% to US$261m
- H1 net sales flat at $2.99bn
- Operating profits in H1 fall 2% to $482m
- FY reported sales growth of around 2% forecast
DPSG says it has suffered from the bad weather
Dr Pepper Snapple Group has pointed to a "very challenging" market and bad weather, after reporting a drop in half-year profits off the back of flat sales.
Net profits in the six months to the end of June fell by 6.8% to US$261m, the Texas-based group said today (24 July). Sales in the period were flat at $2.99bn, while operating profits in the six months were down by 2% at $482m.
In its second quarter, net profits fell by 13% to $155m, as sales were flat at $1.6bn. Operating profits in the three months dropped by 5% to $285m.
The company has been dragged down by its Q2, after reporting a slight rise in Q1 net profits in April.
Larry Young, DPSG's president & CEO, said the company was operating in “a very challenging environment”. He added: “During the quarter, our business was negatively impacted by unseasonably cold and wet weather, a cautious consumer and continued CSD category headwinds.”
The group's overall first-half volumes fell 3% and in Q2 were down 4%. The Dr Pepper brand saw volumes down 4% in the second-quarter, while 7UP volumes were down “mid-single digit”.
However, Young said the group continues to “gain both volume and dollar share in the CSD category” and its low-calorie Ten portfolio is “performing in line with our expectations”.
Looking ahead, he added: “Changing consumer behaviour takes time, and we remain committed to giving consumers a reason to come back to the CSD category. With strong innovation and execution plans in place, I am encouraged about our opportunities for the remainder of 2013.”
The group said it expects full-year reported net sales growth of “about 2%”.
Invesment in its Ten portfolio is due to be around $30m, it added.
To read the company's official statement, click here.
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