Dr Pepper Snapple Group swings to loss in year
March 26, 2009
by FoodBusinessNews.net Staff
PLANO, TEXAS — Attributing difficulties to the general economic climate, Dr Pepper Snapple Group, Inc. suffered a loss of $312 million for the year ended Dec. 31, 2008, which compared with net income of $497 million during the previous year.
Sales for the year were $5,710 million, up slightly from $5,695 million during the previous year.
"In our first year as a public company, and in what is arguably one of the toughest economic environments on record, we are proud of what we have accomplished so far," said Larry Young, president and chief executive officer. "Our C.S.D. and value juice momentum continues, and together with the expanded distribution of Crush we’re off to a solid start in 2009. The strength of our brands, the passion of our people and strong relationships with our retail partners and bottlers, along with the realization of a strengthened company-owned route-to-market, provide the fuel that will support our growth plans for many years to come."
For the fourth quarter ended Dec. 31, the company sustained a loss of $621 million, which compared with income of $138 million during the same period of the previous year. Sales for the quarter were $1,376 million, down 1% from $1,388 million during the same quarter of the previous year.
During the quarter the company had a non-cash after-tax impairment charge of $696 million.
"With the U.S. economy facing its worst recession in postwar times and rising unemployment rates, consumers have dramatically changed the way they shop," Mr. Young said. "Value, quality, product satisfaction and increased at-home usage are key factors in purchasing decisions. With our portfolio of leading C.S.D.’s and value-priced juices, we continue to offer consumers affordable treats every day. For the quarter, our C.S.D. case volume contracted only slightly at a time when liquid refreshment beverages declined low single-digits. Weak demand for our premium products, especially Snapple, continued during the fourth quarter and in to 2009."