Dr Pepper Snapple Group, Inc. reported third quarter 2013 results with a reported net sales increase of 1 percent. EPS (earnings per share) were $1.01 compared to $0.84 in the prior year period. Excluding unrealized commodity mark-to-market gains in both years and certain items affecting comparability in the current year, Core EPS were $0.88 compared to $0.79 in the prior year period. Year-to-date, the company reported earnings of $2.28 per diluted share compared to $2.15 per diluted share in the prior year period. Excluding certain items affecting comparability and unrealized commodity mark-to-market impacts in both years, Core EPS were $2.25 compared to $2.10 in the prior year period.
For the quarter, reported net sales increased 1 percent reflecting 3 percentage points of positive mix and pricing, partially offset by a 1 percent sales volume decline and higher discounts. Reported segment operating profit (SOP) increased 5 percent, or $18 million, due to a year-over-year LIFO benefit of $14 million, ongoing productivity improvements, a favorable adjustment to a previously disclosed legal provision and lower people costs primarily driven by favorable costs associated with our insurance programs. These benefits were partially offset by commodity cost increases, principally sweeteners.
Reported income from operations for the quarter was $300 million, including a $1 million unrealized commodity mark-to-market gain. Reported income from operations was $308 million in the prior year period, including $18 million of unrealized commodity mark-to-market gains.
Year-to-date, reported net sales increased 1 percent and reported income from operations was $782 million, including $13 million of unrealized commodity mark-to-market losses. Reported income from operations was $800 million in the prior year period, including $18 million of unrealized commodity mark-to-market gains.
DPS President and CEO Larry Young said in a prepared statement, “We continue to operate in an extremely challenging environment, with significant pressures in the CSD (carbonated soft drink) category now impacting both regular and diet products. Against this backdrop, our teams remained committed to executing our strategy and we continued to gain volume share while holding value share in the CSD category. We’ve continued to invest in our brands for their long-term success, and I’m encouraged at this early date with the performance of our Core 4 TEN platform as research tells us that it is bringing consumers back to the category. Rapid continuous improvement continues to drive meaningful results and is enabling us to build an improved operating platform. With our portfolio of consumer-loved brands, our strong execution focus and our continuous improvement mindset, I am confident we can deliver our profit goals for 2013.”
