Dr Pepper Profit Rises 3 Percent
NEW YORK (AP) — Dr Pepper Snapple Group Inc. said Thursday that higher prices for its portfolio of sodas, teas and juices helped lift its second-quarter net income by 3 percent.
The beverage company, which makes 7Up, Sunkist and Mott's, said it lifted prices by 4 percent overall during the period. That offset a 1 percent dip in sales volume and the negative impact of a stronger dollar.
Sales volume of carbonated soft drinks was flat, with the company's 10-calorie drink — Dr Pepper Ten — offsetting declines in Sun Drop and 7Up. Overall sales volume for the non-carbonated drinks fell 6 percent, reflecting a 20 percent decline in Hawaiian Punch and a 2 percent drop in Mott's.
For the three months ended June 30, the company said it earned $178 million, or 83 cents per share. That's compared with $172 million, or 77 cents per share, in the same period last year.
Excluding one-time items, the company said it earned 85 cents per share in the quarter. By that measure, analysts on average expected a profit of 82 cents per share.
Revenue for the quarter rose 2 percent to $1.62 billion, but fell shy of the $1.63 billion analysts expected.
The company said cost-saving measures were partially offset by higher costs for packaging, ingredients and marketing.
The company, based in Fort Worth, Texas, stood by its full-year projection for core earnings of $2.90 to $2.98 per share. Analysts expect $2.95 per share.
Shares of Dr Pepper fell 15 cents to $43.62 in midday trading Thursday.