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DR PEPPER SNAPPLE GP Reports Operating Results (10-Q)

October 24, 2012 | About:

10qk

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DR PEPPER SNAPPLE GP (DPS) filed Quarterly Report for the period ended 2012-09-30.

Dr Pepper Snapple Group Inc. has a market cap of $9.36 billion; its shares were traded at around $42.88 with a P/E ratio of 15.7 and P/S ratio of 1.6. The dividend yield of Dr Pepper Snapple Group Inc. stocks is 3.1%.

Highlight of Business Operations:

Gross Profit. Gross profit increased $45 million, or approximately 5%, for the three months ended September 30, 2012, compared with the three months ended September 30, 2011. Gross margin of 59.0% for the three months ended September 30, 2012, was higher than the 56.0% gross margin for the three months ended September 30, 2011. Significant factors resulting in the higher gross margin include $15 million of unrealized gains during the three months ended September 30, 2012 for the mark-to-market activity on commodity derivative contracts versus $9 million of unrealized losses for the three months ended September 30, 2011, increases in our net price realization and our ongoing productivity improvements.

Volume. Sales volume increased 1% for the three months ended September 30, 2012, as compared with the three months ended September 30, 2011. The increase in volume was driven by a 5% increase in Peñafiel as a result of package innovations and a 12% increase in Crush. These increases in sales volume were partially offset by a 3% decrease in Squirt due to lower sales to third party bottlers and a 6% decrease in Aguafiel as a result of lower promotional activity in the current period.

Gross Profit. Gross profit increased $55 million, or approximately 2%, for the nine months ended September 30, 2012, compared with the nine months ended September 30, 2011. Gross margin of 58.0% for the nine months ended September 30, 2012, was higher than the 57.7% gross margin for the nine months ended September 30, 2011. Significant factors causing the increase in gross margin were increases in our net price realization and $15 million of unrealized gains during the nine months ended September 30, 2012 for the mark-to-market activity on commodity derivative contracts versus $14 million of unrealized losses for the nine months ended September 30, 2011, which were partially offset by higher costs for packaging materials, flavors, apple juice concentrate, sweeteners and other commodities.

Volume. Sales volume increased 1% for the nine months ended September 30, 2012, as compared with the nine months ended September 30, 2011. The increase in volume was driven by a 4% increase in Peñafiel as a result of package innovations, a 15% increase in Clamato, a 9% increase in Crush and a double-digit increase in Dr Pepper. These increases in sales volume were partially offset by a 13% decrease in Aguafiel as a result of lower promotional activity.

Net cash provided by operating activities decreased $316 million for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011, primarily due to the tax payments of $531 million resulting from the licensing agreements with PepsiCo and Coca-Cola. The tax payments were partially offset by favorability in our working capital. Accounts payable improved $31 million in 2012 as a result of timing of payments. Trade accounts receivable improved $54 million driven primarily by lower net sales in the third quarter of 2012. Inventories improved $26 million largely due to ongoing productivity improvements.

Read the The complete Report

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10qk
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