Dr Pepper Snapple Group, Inc. reported second quarter 2013 earnings per share (EPS) of $0.76 compared to $0.83 in the prior year period. Excluding unrealized commodity mark-to-market losses and certain items affecting comparability in both years, Core EPS were $0.84 compared to $0.85 in the prior year period. Year-to-date, the company reported earnings of $1.27 per diluted share compared to $1.31 per share in the prior year period. Excluding certain items affecting comparability and unrealized commodity mark-to-market losses in both years, Core EPS were $1.37 compared to $1.31 in the prior year period.
For the quarter, reported net sales decreased 1 percent. Sales volume declines of 4 percent were partially offset by 2 percentage points of favorable pricing and mix. Foreign currency increased net sales by just under 1 percentage point in the quarter. Reported segment operating profit (SOP) decreased 3 percent, or $11 million, as the net sales decline, commodity cost increases principally related to apples, a $9 million increase in marketing and a $4 million pre-spin related unclaimed property audit charge were partially offset by a year-over-year last in, first out (LIFO) benefit of $11 million, ongoing productivity improvements and the favorable comparison associated with an $8 million depreciation adjustment in the prior year.
Reported income from operations for the quarter was $285 million, including $7 million of unrealized commodity mark-to-market losses. Reported income from operations was $300 million in the prior year period, including $6 million of unrealized commodity mark-to-market losses.
Year-to-date, reported net sales were flat and reported income from operations was $482 million, including $14 million of unrealized commodity mark-to-market losses. Reported income from operations was $492 million in the prior year period.
DPS president and CEO Larry Young said in a prepared statement, “I am pleased with the perseverance of our people as they continued to execute our strategy amid a very challenging environment. During the quarter, our business was negatively impacted by unseasonably cold and wet weather, a cautious consumer and continued CSD category headwinds.”
Young added, “Against this backdrop, we continued to gain both volume and dollar share in the CSD category and our TEN platform is performing in line with our expectations. Changing consumer behavior takes time, and we remain committed to giving consumers a reason to come back to the CSD category. With strong innovation and execution plans in place, I am encouraged about our opportunities for the remainder of 2013.”
