Dr Pepper Snapple Group reports Q4 results
PLANO, Texas — Earnings per share for Dr Pepper Snapple Group increased 5 cents to 49 cents, compared with the year-ago period, thanks to an increase in consumer spending and new licensing agreements with Coca-Cola and PepsiCo.
Net sales totaled $1.4 billion, a 4.2% increase from fourth quarter 2009. DPS said the increase was attributed to sales volume growth, positive pricing and deferred revenue from its licensing deals with Coca-Cola and PepsiCo. Under these agreements, PepsiCo began distributing Dr Pepper, Crush and Schweppes in the U.S. territories — brands that were distributed by the Pepsi Bottling Group — while Coca-Cola began distributing Dr Pepper in the United States and Canada Dry in the northeastern United States, where the products previously were distributed by Coca-Cola Enterprises.
For its volume, DPS experienced a 3% increase, while its "Core 4" brands declined 1%. Crush and Canada Dry grew double digits. Sunkist soda declined high-single digits, 7UP declined mid-single digits and A&W declined low-single digits. DPS added that Snapple and Hawaiian Punch volumes were up 3% and 4%, respectively.
Looking ahead, DPS said it expects full-year reported net sales to increase 3% to 5% and diluted earnings per share to be in the $2.70 to $2.78 range.