Weather parches profit for Dr Pepper Snapple

by Staff
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PLANO, TEXAS — Unseasonably bad weather and headwinds in the carbonated soft drink category contributed to a 1% drop in sales for Dr Pepper Snapple Group, Inc. during the second quarter.

“Changing consumer behavior takes time, and we remain committed to giving consumers a reason to come back to the C.S.D. category,” said Larry Young, president and chief executive officer. “With strong innovation and execution plans in place, I am encouraged about our opportunities for the remainder of 2013.”

For the quarter ended June 30, the company had net income of $155 million, equal to 76c per share on the common stock, down from $178 million, or 84c per share, during the same quarter of the prior year. Income for the first six months was $261 million, or $1.28 per share, compared with $280 million, or $1.32 per share, during the same period a year ago.

The company posted second-quarter net sales of $1,611 million, down from $1,621 million during the second quarter of the previous year. Sales for the first six months were flat at $2,991 million, from $2,983 million during the same period of the prior year.

Amidst challenges of cautious consumer spending and increasing commodity costs related to apples, the company gained volume and dollar share in the C.S.D. category, as its TEN platform of mid-calorie beverages performed to expectations.
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