PLANO, Texas, July 23, 2015 /PRNewswire/ -- Dr Pepper Snapple Group, Inc. (NYSE: DPS) reported second quarter 2015 EPS of $1.14 compared to $1.06 in the prior year period. Core EPS were $1.13, up 7%, compared to $1.06 in the prior year period. Year-to-date, the company reported earnings of$1.95 per diluted share compared to $1.84 per share in the prior year period. Core EPS were $1.94, up 8%, compared to $1.80 in the prior year period.
For the quarter, reported net sales increased 1%, which included favorable product, package and segment mix and a 1% increase in sales volumes, partially offset by 2 percentage points of unfavorable foreign currency translation. Reported segment operating profit (SOP) increased 6%, or$24 million, on net sales growth, ongoing productivity improvements and favorable commodity costs, partially offset by 1 percentage point of unfavorable foreign currency translation.
Reported income from operations for the quarter was $369 million, including $5 million in unrealized commodity mark-to-market gains. Reported income from operations was $348 million in the prior year period. Core income from operations was $365 million, up 5% compared to the prior year period.
Year-to-date, reported net sales increased 3%, and reported income from operations was $639 million, including $4 million of unrealized commodity mark-to-market gains. Foreign currency translation negatively impacted reported net sales by 1% and reported income from operations by 2%. Reported income from operations was $608 million in the prior year period, including $12 millionof unrealized commodity mark-to-market gains. Core income from operations was $636 million, up 7% compared to the prior year period.
DPS President and CEO Larry Young said, "We've had a good start to the year, and I'm proud of what our teams have been able to accomplish in this competitive environment. They remained focused on our strategy and continued to deliver against our key priorities. Year-to-date, we grew volume and dollar share in both the CSD and shelf-stable juice categories in Nielsen measured markets and gained or held distribution and availability across our portfolio."
Young continued, "We've brought innovation to the market that addresses consumers' evolving needs, and Rapid Continuous Improvement (RCI) continues to drive growth and productivity across the business. I'm confident that our teams will continue to execute against our plans for the balance of the year."
BCS Volume
For the quarter, bottler case sales (BCS) volume increased 1% with carbonated soft drinks (CSDs) increasing 1% and non-carbonated beverages (NCBs) increasing 3%.
By geography, U.S. and Canada volume increased 1%, and Mexico and the Caribbean volume increased 7%.
In CSDs, Peñafiel increased 12% in the quarter on increased promotional activity and distribution gains. Squirt increased 6%, while Schweppes increased 8%. Brand Dr Pepper grew 1% in the quarter. Our Core 4 brands decreased 1%, as a mid-single-digit increase in Canada Dry was more than offset by mid-single-digit declines in 7UP, Sunkist soda and A&W. Crush declined 4%, and fountain foodservice volume grew 4% in the period.
In NCBs, Snapple increased 11% driven primarily by product innovation. Our water category grew 6% primarily on growth in Bai 5 and FIJI, and Clamato increased 8% on increased promotional activity. Hawaiian Punch increased 2% in the quarter, and Mott's declined 7%, driven primarily by declines in juice.
Sales Volume
For the quarter and year-to-date, sales volumes increased 1%.
Beverage Concentrates
Net sales increased 2% in the quarter driven by favorable product mix and concentrate prices taken earlier in the year, which were partially offset by a 1% decline in concentrate shipments and higher discounts. SOP increased 5% on net sales growth and lower marketing and information technology costs.
Packaged Beverages
Net sales for the quarter increased 3% on favorable price/mix of 2% and a 1% increase in sales volumes. SOP increased 8% on net sales growth, ongoing productivity improvements and favorable commodity costs, partially offset by the cost of U.S. sourced products sold in Canada. Due to the strengthening of the U.S. dollar, the cost of those U.S. sourced products sold in Canada decreased SOP 2%. View the full report here.
