Dr Pepper Snapple Group, Inc. (DPS) Wednesday turned in a surprisingly big fourth quarter profit, as the soft-drink maker was able to pass along higher prices.
"As I look back on a year of unprecedented commodity and retail price increases, I am pleased with the performance of our brands", President and CEO Larry Young said in a statement.
Young expects the fourth quarter momentum to carry over into 2012, following a successful rollout of Dr Pepper Ten, a 10-calorie alternative to Diet Dr. Pepper. The company plans to aggressively market the product this year.
While the flagship Dr. Pepper soda has lost some of its appeal to health-conscious consumers, the company said new fountain flavors and lower-calorie products have been strong.
Total bottler case sales volume for the quarter declined 3 percent from last year, with volumes of both soft drinks and non-carbonated beverages dropping. Volumes decreased in the U.S. And Canada, but grew in the Caribbean and Mexico.
The Plano, Texas-based maker of 7UP, Mott's, Snapple, Canada Dry reported adjusted earnings grew 22 percent to $0.82 per share from $0.67 per share a year ago, excluding items.
On average, 13 analysts polled by Thomson Reuters estimated earnings of $0.75 per share for the quarter. Analysts' estimates usually exclude special items.
Net sales for the quarter increased 3 percent to $1.46 billion from $1.41 billion in the same quarter last year. Sales topped ten analysts consensus estimate of $1.45 billion by a whisker.
For 2011, net sales increased 5 percent and earnings rose 26 percent to $2.74 per share from last year. Adjusted earnings grew 16 percent to $2.79 per share from the prior year.
Looking ahead, the company said it expects earnings for fiscal 2012 in a range of $2.90 to $2.99 per share, on anticipated annual net sales growth near the low end of its long-term growth range of 3 to 5 percent. Street is currently looking for full-year earnings of $2.91 per share, on revenues of $6.06 billion.
In Wednesday's regular trading session, DPS is currently trading at $39.76, up $0.65 or 1.65% on a volume of 1.40 million shares.
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