Pepsi Philippines munches on flat profit growth as it pours money on snacks business
Pepsi-Cola Products Philippines Inc. reported a near flat net profit of P812.1 million in 2015 from 2014’s P810.9 million as high sugar prices and investments in its snacks business ate its revenue gains.
“Net income remained flat vs. last year due to high sugar prices and Snacks start up.
The Company will continue with its long-term strategy of distribution and manufacturing investments supported by marketing programs to continue the growth momentum,” Pepsi Cola Products Philippines said in its disclosure to the stock exchange.
The company’s more popular products are carbonated soft drinks such as Pepsi-Cola, 7Up and Mountain Dew and non carbonated beverages such as Gatorade, Tropicana/Twister and Lipton.
Pepsi Cola Products Philippines started commercial production of snacks in its Cabuyao facility in the fourth quarter of last year and plans to capitalize on what it sees as a strong category opportunity.
The company’s snack products are under the brand names Cheetos and Lay’s.
Carbonated soft drinks account for the bulk of the company’s sales at P23.7 billion.
Sales of noncarbonated beverages amounted to P8.4 billion. The snacks business, which only kicked in late in the fourth quarter of last year, reported P4 million in sales. (By: Eileen A. Mencias)