Investing Stocks in Philippines: Coca-Cola

Showing posts with label Coca-Cola. Show all posts

Monday, April 29, 2013

Stock News 2013: Pepsi Cola profit jumps 20% to P270M in Q1

Deutsch: Logo Altes Pepsi Cola-Logo (Photo credit: Wikipedia)

Listed beverage maker Pepsi-Cola Products Philippines Inc. posted a hefty improvement in its first quarter performance due to strong sales.

In its financial report, Pepsi-Cola said its net income jumped 20 percent to P270 million in the first three months of the year. Gross revenues hit P6 billion, up 14 percent from a year ago.

“This significant achievement was driven by increasing distribution coverage with the intent of reaching more consumers from various consumer segments,” said Pepsi-Cola president Partho Chakrabarti.

“We also focused on product expansion and aggressive marketing programs, with equally supported investments in containers, coolers, vehicles and manufacturing,” he added.

The 18-percent growth in sales volume offset the 13-percent increase in cost of sales, which consists primarily of raw and packaging materials, direct labor and manufacturing overhead.

This allowed Pepsi-Cola to post a 14-percent gain in gross profit to P1.4 billion.

Operating expenses, which is composed of selling and distribution, general and administrative, and marketing expenses, jumped 12 percent in the first quarter.

Jika Dalupan, Pepsi-Cola’s vice-president for corporate affairs, said the top line growth helped fund strategic investments personnel, marketing campaigns, and sales and distribution infrastructure.

Pepsi- Cola is the exclusive bottler of PepsiCo beverages in the Philippines which include Pepsi-Cola, Mountain Dew, Seven Up, Mirinda, Gatorade, Tropicana, Mug, Lipton, Sting, and Premier.

Pepsi-Cola has joined the fray in the powdered drinks category through Mirinda Powder Fun Mix as it aims to strengthen its non-carbonated business.

In September, it launched Tropicana Coco Quench, which is 100 percent made from real coconut water. It will be available initially in the Philippines and later on to the rest of Asia as it seeks to expand its non-carbonated beverage segment.

Pepsi-Cola is partly owned by Lotte Chilsung, one of the biggest beverage companies in South Korea. The listed company has established manufacturing facilities across the country, serving at least 440,000 outlets and providing employment through its extensive distribution network.

http://www.philstar.com/business/2013/04/26/934909/pepsi-cola-profit-jumps-20-p270m-q1

Sunday, July 8, 2012

Stock News 2012: Local Coca-Cola unit optimistic on growth

Coca-Cola (Photo credit: Wikipedia)
Coca-Cola Bottlers Philippines Inc. (CCBP) is on track to growing faster than the pace of the economy, an executive said.

Growth will be driven by higher consumer spending on the back of government-initiated activities and the approaching election season.

“We are happy to say that our Coca-Cola business is growing well and growing in all sectors of the country, which is exciting for us,” CCBP president and chief executive William Schulz said in a chance interview.

“It has been a good year so far but halfway still to go...we are on track to delivering our internal targets,” Schulz added.

Late in May, Guillermo Aponte, president and general manager of CCBP’s parent firm Coca-Cola Export Corp. (CCEC) said the company expects to “grow faster than the economy” this year.

The government targets a five to six percent growth in gross domestic product (GDP) this year, faster than the 3.7 percent uptick last year.

The country’s GDP climbed 6.4 percent in the first quarter, the fastest in the 10-member countries of the Association of South East Asian Nations and second only to China in the Asian region.

“We are certainly delighted that the government is investing in the economy because economic growth helps consumers to buy more products,” Schulz said.

The government has fast-tracked its spending to stimulate the economy despite the debt crisis in the Eurozone and timid growth in the US.

Furthermore, election spending will bring more growth to CCBP even in the second half this year. The mid-term senatorial election is scheduled in May next year.

“In the Philippines, during the election season there is economic activity,” Schulz said.

“We expect the equity of our brands to drive our business but it is always good for us when the economy is strong,” Schulz said.

The Philippines is now the company’s 10th largest market in the world in terms of sales volume.

Schulz said Coca-Cola is the top softdrinks brand in the Philippines, leading the nearest competitor by 15 to 1.

Last year, CCEC opened a manufacturing plant in Cagayan de Oro to cater to consumers in the region. It also expanded the capacity of its plants in Sta. Rosa Laguna and Cebu.

To date, the company currently has around 22 bottling lines nationwide, with its newest in Cebu that was opened early this year.

CCEC fully owns CCBP after it bought back the 60 percent share held by San Miguel Corp. four years ago.

The company manufactures carbonated beverages Coke, Sprite, Royal, as well as other non-carbonated beverages.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=825112