Dr Pepper Snapple Group, Inc. (DPS) has reported 10.81 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $165 million, or $0.90 a share in the quarter, compared with $185 million, or $0.97 a share for the same period last year. Revenue during the quarter went up marginally by 2.07 percent to $1,578 million from $1,546 million in the previous year period. Gross margin for the quarter contracted 28 basis points over the previous year period to 60.27 percent. Total expenses were 78.77 percent of quarterly revenues, down from 79.17 percent for the same period last year. This has led to an improvement of 40 basis points in operating margin to 21.23 percent.
Operating income for the quarter was $335 million, compared with $322 million in the previous year period.
DPS president and chief executive officer Larry Young said, "Im proud of our teams and the strong performance they delivered in 2016. In a continuously competitive environment, we remained focused on our integrated communication and execution strategies and unlocked growth across our priority brands. We recently completed our acquisition of Bai, which will strengthen our priority brand portfolio and bring exciting innovation opportunities to the company. We also remained relentlessly focused on driving growth and productivity across our business with Rapid Continuous Improvement."
Operating cash flow declinesDr Pepper Snapple Group, Inc. has generated cash of $939 million from operating activities during the year, down 5.25 percent or $52 million, when compared with the last year. The company has spent $189 million cash to meet investing activities during the year as against cash outgo of $194 million in the last year. It has incurred net capital expenditure of $176 million on net basis during the year, up 10 percent or $16 million from year ago.
Cash flow from financing activities was $130 million for the year as against cash outgo of $114 million in the last year period.
Cash and cash equivalents stood at $1,787 million as on Dec. 31, 2016, up 96.16 percent or $876 million from $911 million on Dec. 31, 2015.
Working capital increases sharply
Dr Pepper Snapple Group, Inc. has recorded an increase in the working capital over the last year. It stood at $1,685 million as at Dec. 31, 2016, up 620.09 percent or $1,451 million from $234 million on Dec. 31, 2015. Current ratio was at 2.60 as on Dec. 31, 2016, up from 1.15 on Dec. 31, 2015.
Debt increases substantially
Dr Pepper Snapple Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $4,478 million as on Dec. 31, 2016, up 32.41 percent or $1,096 million from $3,382 million on Dec. 31, 2015. Total debt was 45.74 percent of total assets as on Dec. 31, 2016, compared with 38.13 percent on Dec. 31, 2015. Debt to equity ratio was at 2.10 as on Dec. 31, 2016, up from 1.55 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 6.98 for the quarter from 9.47 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
