Cheetos, Lay’s start sizzling for Pepsi Philippines
Pepsi-Cola Products Philippines Inc.’s snacks business generated P27 million from the sales of Cheetos and Lay’s in the first quarter of the year, 575 percent more than the P4 million it made in the fourth quarter of 2015.
Pepsi-Cola Products Philippines started its snacks business only in the fourth quarter of last year.
In its disclosure to the stock exchange, the company reported a 17-percent drop in profits to P159.3 million in the first quarter of the year from P192 million a year ago which it blamed on “high sugar prices and cost related to Snacks start-up.”
Pepsi-Cola Products Philippines’s biggest shareholder is South Korea’s Lotte Chilsung Beverage Co. Ltd., which has a 38.88-percent stake. Quaker Global Investments B.V. is another big shareholder with a 25-percent stake.
Pepsi-Cola Products Philippines said it invested P1.5 billion on manufacturing and distribution.
“The Company plans to continue the growth momentum through distribution expansion, manufacturing infrastructure and capacity development, and product innovations,” it said in its quarterly report.
Pepsi-Cola Products Philippines reported a double-digit growth in sales volume across its major categories—soft drinks, noncarbonated beverages, and snacks. Its gross sales revenue grew by 12 percent to P8.2 billion in the first quarter of the year but the cost of goods increased by 16 percent because of higher sugar prices. (By: Eileen A. Mencias)