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

Author's Avatar
Jul 26, 2012
DR PEPPER SNAPPLE GP (DPS, Financial) filed Quarterly Report for the period ended 2012-06-30.

Dr Pepper Snapple Group Inc. has a market cap of $9.28 billion; its shares were traded at around $44.05 with a P/E ratio of 15.9 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 $16 million, or approximately 2%, for the three months ended June 30, 2012, compared with the three months ended June 30, 2011. Gross margin of 57.7% for the three months ended June 30, 2012, was lower than the 58.2% gross margin for the three months ended June 30, 2011. Significant factors causing the decrease in gross margin were higher costs for flavors, sweeteners, packaging materials, apple juice concentrate and other commodities and unfavorable product mix, which were partially offset by increases in our net price realization.

Volume. Sales volume decreased 2% for the three months ended June 30, 2012, as compared with the three months ended June 30, 2011. The decrease in volume was driven by a 22% decrease in Aguafiel as a result of lower promotional activity. These decreases in sales volume were partially offset by a 23% increase in Clamato, an 11% increase in Crush and a double-digit increase in Dr Pepper.

Volume. Total sales volume increased 1% for the six months ended June 30, 2012, compared with the six months ended June 30, 2011. Higher CSD volumes and contract manufacturing increased our total segment sales volume by 2% and 1%, respectively. Lower NCB volumes reduced our total sales volume by 2%.

Volume. Sales volume increased 1% for the six months ended June 30, 2012, as compared with the six months ended June 30, 2011. The increase in volume was driven by a 3% increase in Peñafiel, a 22% increase in Clamato, a 1% increase in Squirt, a 7% increase in Crush and a double-digit increase in Dr Pepper. These increases in sales volume were partially offset by a 16% decrease in Aguafiel as a result of lower promotional activity.

The change in net cash (used in) provided by operating activities was a use of $297 million for the six months ended June 30, 2012 as compared to the six months ended June 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 $71 million in 2012 as a result of timing of payments. Trade accounts receivable improved $43 million driven primarily by the increase in net sales and improved collections. Inventories improved $26 million largely due to ongoing productivity improvements.

Read the The complete Report