Dr Pepper Snapple 3Q Revenue Falls Flat
PLANO, Texas (AP) — Dr. Pepper Snapple Group Inc.'s net income climbed 16 percent in the third quarter as the company continued to raise prices. But revenue was flat and it lowered its full-year revenue forecast.
The company, which makes 7Up, Sunkist, Mott's and other drinks, earned $179 million, or 84 cents per share, for the three months ended Sept. 30. That's up from $154 million, or 71 cents per share, a year ago. Revenue was virtually unchanged at $1.53 billion.
Stripping out one-time items, earnings were 79 cents per share.
Analysts expected 77 cents per share on revenue of $1.56 billion, according to FactSet.
Sales volume fell 3 percent, which includes declines in beverage concentrates and packaged beverages.
Bottler case sales volumes for carbonated soft drinks and non-carbonated beverages both dropped. Among the carbonated soft drink brands posting lower volumes were 7Up, Sunkist, Dr. Pepper, Sun Drop and A&W. Canada Dry volume improved.
For non-carbonated beverages, Hawaiian Punch and Mott's both reported lower volumes, offset somewhat by a volume increase for Snapple.
Volume dropped in the U.S. and Canada and edged up slightly in Mexico and the Caribbean.
Sales of beverage concentrates rose on price hikes and lower discounts, while sales of packaged beverages dipped 1 percent mostly because of lower volume. Latin America beverage sales rose on a better product mix, higher prices and a slight improvement in sales volumes.
The Plano, Texas, company now expects 2012 revenue to rise about 2 percent. It previously called for growth at the low end of its long-term 3 percent to 5 percent range. Dr. Pepper Snapple still expects full-year earnings of $2.90 to $2.98 per share.
Analysts foresee 2012 earnings of $2.96 per share on revenue of $6.06 billion.
Shares of Dr. Pepper Snapple fell $1.40, or 3.2 percent, to $42.65 in afternoon trading. The stock has traded in a 52-week range of $34.65 to $45.85.