Dr Pepper Snapple Group reports 3Q earnings; updates Snapple look, tea recipes

PLANO, Texas Dr Pepper Snapple Group on Thursday reports its results for the third quarter 2008—its first full quarter as a stand-alone business after leaving former parent company, Cadbury, May 7.

The company reported earnings of $0.41 per share for the third quarter 2008, compared to $0.61 per share third quarter 2007. Without restructuring costs over the last two years or separation and transaction costs in the current year, earnings totaled $0.45 per share for third quarter 2008, compared to $0.63 per share the previous year.

Net sales had declined by 2 percent, due to the loss of Glaceau water products distribution, the company said. Excluding Glaceau, net sales up were up 5 percent.

Dr Pepper Snapple Group also reported that carbonated beverage volume stayed steady, up 0.5 percent, while its non-carbonated volume, excluding Glaceau, was up 3 percent.  

The company also reported year-to-date profit of $1.21 per share in 2008, compared to $1.42 per share for 2007. Without considering restructuring costs, earnings totaled $1.46 per share for the year, compared to $1.50 per share in 2007. The company also reported making$523 million in cash and repaying $295 million in since separating from Cadbury.

“Without a doubt, this is one of the toughest environments the beverage industry has faced in many years,” DPS president and chief executive officer, Larry Young said. “With disposable incomes falling, consumers are thinking harder about what they buy. Despite these headwinds, we demonstrated during the quarter that our portfolio of flavored beverages has room to grow and that our business continues to generate strong cash flow.”

DPS has also announced the reformulation and reinvented look for its Snapple bottled teas. The new formulations are aimed at increasing consumer interest despite the cash-poor economy by making the Snapple teas more economical.

The Snapple marketing team is also working to produce a hip, flashy new ad campaign to draw in younger consumers, reports said.