Dr Pepper Snapple net falls 21% in Q2

by Eric Schroeder
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PLANO, TEXAS — Dr Pepper Snapple Group, Inc. (DPS), which earlier this year spun off from Cadbury Schweppes, posted net income of $108 million in the second quarter ended June 30, equal to 42c per share on the common stock, down 21% from $136 million, or 54c per share, in the same period a year ago. DPS said the most recent results included a charge of 3c per share related to restructuring. Excluding restructuring, transaction and separation costs, bridge loan fees and expenses and tax items, DPS said e.p.s. would have been 60c per share in the most recent quarter.

Net sales totaled $1,557 million, up narrowly from $1,543 million. DPS said the acquisition of SeaBev contributed new sales growth of 2 percentage points, while the loss of the distribution agreement for glaceau products adversely affected sales growth by 4 percentage points.

"It’s no secret that the beverage industry continues to face significant headwinds," said Larry Young, president and chief executive officer of DPS. "Higher prices at the gas pump and at retailers across the country have impacted our consumers and their shopping habits. At DPS, we will continue to look for ways to leverage our strong flavor portfolio, customer partnerships and vertically integrated business model to expand our distribution footprint and provide preferred and affordable brands to more consumers in more outlets."

DPS said it expects net sales growth of 3% to 5% and earnings per share of at least $1.65 in fiscal 2008.

For the six months ended June 30, net income fell 1% to $203 million, or 80c per share, from $205 million, or 81c per share. Net sales rose to $2,864 million from $2,812 million.

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