PLANO, Texas, Feb. 17, 2016 /PRNewswire/ -- Dr Pepper Snapple Group, Inc. reported fourth quarter 2015 EPS of $0.97 compared to $0.77 in the prior year period. Core EPS were $1.00, up 14%, compared to $0.88 in the prior year period. For the year, the company reported earnings of $3.97 per diluted share compared to $3.56 per diluted share in the prior year. Core EPS were $4.02, up 10%, compared to $3.65 in the prior year.
For the quarter, reported net sales increased 2% after a 2% reduction for foreign currency translation. Net sales grew on favorable product, package and segment mix, price increases and lower discounts. Reported segment operating profit (SOP) increased 6% after a 2% reduction for foreign currency translation. Contributing to this increase were net sales growth, lower commodity costs and ongoing productivity improvements, partially offset by increases in certain operating costs and a $5 million increase in marketing investments.
Reported income from operations for the quarter was $322 million, which included a $7 million impairment charge on the Garden Cocktail brand, a vegetable juice sold in Canada. Reported income from operations was $256 million in the prior year period, which included a $23 million unrealized commodity mark-to-market loss and a $14 million charge due to the annuitization of certain pension obligations. Core income from operations for the quarter was $329 million, up 13%, representing 21.3% of net sales compared to 19.3% in the prior year period. Foreign currency translation neutral growth in core income from operations was 15%.
For the year, reported net sales increased 3%. Reported income from operations was $1,298 million, including the aforementioned $7 million impairment charge and a $5 million unrealized commodity mark-to-market loss. Foreign currency translation negatively impacted reported net sales and reported income from operations by 2%. Reported income from operations in the prior year was$1,180 million, which included the aforementioned $14 million pension charge and a $13 million unrealized commodity mark-to-market loss. Core income from operations was $1,312 million, up 9%, representing 20.9% of net sales compared to 19.7% in the prior year. Foreign currency translation neutral growth in core income from operations was 11%.
DPS President and CEO Larry Young said, "I'm proud of our teams for remaining focused against our priorities and delivering strong results in a competitive environment. We grew both dollar and volume share across our CSD and shelf-stable juice categories and gained or held distribution across many of our key brands and packages in both Grocery and Convenience. The fundamentals of our business are strong, and as we move into 2016 our teams will be focused on driving growth across our priority brands through strong consumer communication, relevant innovation and aligned execution and activation while using our developing Rapid Continuous Improvement (RCI) capabilities to further enhance growth and productivity."
BCS Volume
For the quarter, BCS (bottler case sales) volume increased 1%, with carbonated soft drinks (CSDs) flat and non-carbonated beverages (NCBs) increasing 4%.
By geography, U.S. and Canada volume was flat, and Mexico and the Caribbean volume increased 6%.
In CSDs, Peñafiel increased 10% on increased promotional activity and distribution gains. Schweppes grew 7% on distribution gains in sparkling waters and growth in the ginger ale category. Squirt increased 3%, while Crush grew 4%. Brand Dr Pepper decreased 2% in the quarter, primarily driven by continued declines in diet and fountain foodservice performance. Our Core 4 brands decreased 2%, as a mid-single-digit increase in Canada Dry was more than offset by a high-single-digit decrease in 7UP, a mid-single-digit decrease in Sunkist soda and a low-single-digit decline in A&W. Fountain foodservice volume decreased 2% in the period.
In NCBs, our water category grew 21% on strong growth in Bai brands, FIJI and Aguafiel. Snapple grew 4% primarily on distribution gains and innovation. Hawaiian Punch grew 3%, and Clamato increased 5% on distribution gains and increased promotional activity. Mott's grew 2% in the quarter.
For the year, BCS volume increased 2% with carbonated soft drinks (CSDs) increasing 1% and non-carbonated beverages (NCBs) increasing 4%.
By geography, U.S. and Canada volume increased 1%, and Mexico and the Caribbean volume increased 8%.
In CSDs, Peñafiel increased 14% on distribution gains and increased promotional activity. Squirt grew 7% primarily driven by strong performance in Mexico and our Hispanic focus in the U.S. Schweppes increased 9% on distribution gains in sparkling waters and growth in the ginger ale category. Brand Dr Pepper decreased 1%, primarily on continued declines in diet. Crush decreased 1% for the year, and our Core 4 brands were flat, as a high-single-digit increase in Canada Dry was offset by mid-single-digit declines in 7UP and Sunkist soda and a low-single-digit decline in A&W. Fountain foodservice volume increased 1% for the year.
In NCBs, our water category grew 13% primarily on growth in Bai brands and FIJI. Snapple grew 6% primarily on innovation and distribution gains. Clamato increased 12% on distribution gains and increased promotional activity. Hawaiian Punch increased 3%, and Mott's decreased 1% for the year.
Sales Volume
Sales volumes were flat in the quarter and increased 1% for the year.
Beverage Concentrates
Net sales increased 2% in the quarter driven by lower discounts and concentrate price increases taken earlier in the year, which were partially offset by a 2% decline in concentrate shipments. SOP decreased 1%, as the increase in net sales was more than offset by higher marketing investments and performance-based incentive compensation costs.
Packaged Beverages
Net sales increased 5% for the quarter on favorable product and package mix, a 1% increase in sales volumes and price increases. SOP increased 17% on net sales growth, lower commodity costs and ongoing productivity improvements, which were partially offset by increases in certain operating costs. Full report.
