Bottler Pepsi-Cola Products Philippines Inc. on Tuesday said its net income grew 41 percent to P192 million in the first quarter of the year, partly as a result of higher sales for the period.
The company said that its gross sales revenue increased by 13 percent to reach P7.3 billion for the quarter, making it the third quarter in a row where revenue growth was ahead of volume growth.
Net income margin improved by 60 basis points due to stronger focus on revenue management and overlapping of last year’s pricing rollback, the company said.
Overall gross margin improved by 170 basis points, it said.
“This strong top-line performance was supported by the company’s sustained and prudent investments in manufacturing, marketing and distribution assets. Our business progress is in line with our plans and we look forward to a sustained growth for the future,” Pepsi-Cola Philippines President Furqan Ahmed Syed said in a statement.
Cost of goods sold increased by 12 percent for the quarter, driven mainly by volume growth and higher depreciation and amortization. Operating expenses, as a percentage of sales, remained at par with the same period last year.
“We are very well pleased with the company’s performance while we continue to satisfy the thirst-quenching needs of our customers and consumers,” the company said.
Pepsi-Cola Philippines recently declared an annual cash dividend of P0.066 per share to all stockholders of record as of the close of business on May 12, payable in June.
The company said it expects to pay total cash dividends amounting to P243.8 million, representing approximately 30 percent of its net income after tax in 2014.
Pepsi-Cola Philippines last declared cash dividends in 2013, also at 30 percent of its 2012 net income after tax.