Dr Pepper Snapple Group, Inc. reported first quarter 2013 earnings per share (EPS) of $0.51 compared to $0.48 in the prior year period. Excluding an unrealized commodity mark-to-market loss in the current year and an unrealized commodity mark-to-market gain in the prior year period, Core EPS were $0.53 compared to $0.46 in the prior year.
For the quarter, reported net sales increased 1 percent reflecting positive price/mix and favorable discounts, partially offset by a 2 percent decline in sales volumes. Reported segment operating profit (SOP) increased 7 percent, or $19 million, as the contributions from net sales growth, ongoing productivity improvements and a lower LIFO inventory provision of $7 million were partially offset by cost increases in commodities, principally apples, and planned increases in labor and benefits. Reported income from operations for the quarter was $197 million, including $7 million of unrealized commodity mark-to-market losses. Reported income from operations was $192 million in the prior year period, including $6 million of unrealized commodity mark-to-market gains.
DPS President and CEO Larry Young said in a prepared statement, “Once again we grew both volume and dollar share in CSDs in Nielsen-measured markets and we continued to expand distribution on our tea and juice portfolios. Despite continued category headwinds, a fragile U.S. consumer and abnormally cold weather across the Northeast and Midwest, our business results remained solid for the quarter. The launch of the Core 4 and RC TEN platform is well underway, and we have seen some early success in the accounts where we currently have distribution. The TEN advertising campaign began airing in mid-March, letting consumers know that they can get both great taste and lower calories with TEN. I remain confident that we will deliver our commitments for the year as our organization continues to embrace Rapid Continuous Improvement and our TEN platform continues to gain traction with both consumers and retailers.”
