Dr Pepper Snapple Group reports 37% jump in EPS for Q1

PLANO, Texas Dr Pepper Snapple Group reported a 37% increase in earnings per share for its first quarter 2009, the company announced Wednesday.

The company reported first quarter 2009 earnings of $0.52 per share, compared with earnings of $0.38 per share in the prior-year period. Excluding net gains related to the Hansen contract termination settlement and the sale of certain distribution rights in the current year period, as well as restructuring charges in the prior year period, the company earned $0.37 per share compared with $0.40 per share in 2008.

For the first quarter, reported net sales declined 3%. Excluding the loss of Hansen product distribution and on a currency neutral basis, net sales increased 4% on 6% sales volume growth and solid pricing actions. Net sales growth was negatively impacted by a higher mix of carbonated soft drink concentrates and value juices. Segment operating profit, as adjusted, increased 18% reflecting lower commodity and fuel costs, operating benefits from higher volumes and a strong cost control focus. Reported income from operations was $265 million, including $62 million of net pre-tax gains related to certain distribution agreement changes.

"While the U.S. economy remains weak, consumer sentiment appears to be improving and we're continuing to see a shift in purchase habits toward CSDs and other value offerings," said Dr Pepper Snapple president and CEO Larry Young. "Our portfolio of CSDs and value juices performed extremely well in the quarter led by strong gains in Crush distribution and Hawaiian Punch and solid Dr Pepper and Core 4 growth. Pressure remains at the premium end of the portfolio, especially with Snapple. We're confident, however, that recent product and package changes coupled with strong marketing programs will return this brand to growth toward the end of this year."

Young added, "As we look ahead, we see a North America beverage industry that will be markedly different, yet has the potential to reignite category growth. For DPS, this presents a unique opportunity to build upon our already strong growth prospects. This will require even greater attention to revenue, cost and productivity management and ongoing investments in our brands to ensure we capture our fair share of the growth."