Dr Pepper Snapple Group Reports Fourth-Quarter And Full-Year 2014 Results

PRESS RELEASE

PLANO, TX -- Feb. 13 --Dr Pepper Snapple Group Inc. reported fourth quarter 2014 EPS of $0.77 compared to $0.78 in the prior year period. Core EPS were $0.88 compared to $0.97 in the prior year.

For the quarter, reported net sales increased 3% on a 2% increase in sales volumes and favorable product, package and segment mix, which were partially offset by 1 percentage point of unfavorable foreign currency translation. Reported segment operating profit (SOP) increased 11%, or $38 million, on net sales growth and ongoing productivity improvements, as well as a favorable comparison to a $56 million non-cash charge due to our withdrawal last year from a multi-employer pension plan.

These increases in year-over-year SOP were partially offset by increases in certain operating costs, including health and welfare and performance-based incentive compensation costs, a $13 million increase in marketing investments and an $8 million unfavorable foreign currency impact. Reported income from operations for the quarter was $256 million, including a $23 million unrealized commodity mark-to-market loss and a $14 million charge due to the annuitization of certain pension obligations. Reported income from operations was $264 million in the prior year period, which included the aforementioned $56 million pension charge and a $3 million unrealized commodity mark-to-market loss.

For the year, reported net sales increased 2%. Reported income from operations was $1,180 million, including the aforementioned $14 million pension charge and a $13 million unrealized commodity mark-to-market loss. Reported income from operations in the prior year was $1,046 million, which included the aforementioned $56 million pension charge and a $16 million unrealized commodity mark-to-market loss. Core income from operations was $1,205 million, up 7% compared to the prior year period. For the year, the company reported earnings of $3.56 per diluted share compared to $3.05 per diluted share in the prior year period. Core EPS were $3.65 compared to $3.20 in the prior year period.

See the full release here.