Dr Pepper Snapple Group reports loss of $1.23 per share in 2008

- Fourth quarter earnings per share excluding certain items were $0.39. Reported loss of $2.44 per share reflects non-cash impairment charges, previously announced restructuring plans and separation related costs.

- Full year 2008, the company generated $709 million of cash from operating activities and repaid $395 million of debt since spin-off.

PLANO, Texas - March 26, 2009: Dr Pepper Snapple Group, Inc. (NYSE: DPS) reported a fourth quarter 2008 loss of $2.44 per share compared to earnings of $0.54 per share in the prior year period. Due to the recent deterioration in macroeconomic and market conditions, the company recorded a non-cash, after-tax impairment charge of $696 million or $2.74 per share in the quarter related to goodwill and certain intangible assets. Excluding this charge and certain other items, the company earned $0.39 per share compared to $0.48 per share in the prior year period.

For the fourth quarter, net sales declined 1% and the loss from operations totaled $836 million compared to income of $273 million in the prior year period. Excluding the impact of glaceau and Hansen U.S. product distribution losses, net sales increased 3% reflecting a 1% increase in sales volume and the ongoing benefit of pricing actions taken earlier in the year. Segment operating profit increased 4% reflecting continuing strength in the company's carbonated soft drinks (CSD) business.

For the year, the company reported a loss of $1.23 per share compared to earnings of $1.96 per share in the prior year period. Excluding certain items, the company earned $1.85 per share compared to $1.98 per share in the prior year period. The company generated $709 million of cash from operating activities. Since its separation from Cadbury in May 2008, the company has repaid $395 million of principal of its floating rate term loan, covering both its 2008 and 2009 obligations.

DPS President and CEO Larry Young said, "With the U.S. economy facing its worst recession in postwar times and rising unemployment rates, consumers have dramatically changed the way they shop. Value, quality, product satisfaction and increased at-home usage are key factors in purchasing decisions. With our portfolio of leading flavored CSDs and value-priced juices, we continue to offer consumers affordable treats every day. For the quarter, our CSD case volume contracted only slightly at a time when liquid refreshment beverages declined low single-digits. Weak demand for our premium products, especially Snapple, continued during the fourth quarter and in to 2009.

"While we have certainly increased our focus on cost containment, we remain committed to our long-term strategy and continue to invest behind growth initiatives. Stepped up marketing spend and increased media leverage ensure we are reaching more consumers every day.

"In our first year as a public company, and in what is arguably one of the toughest economic environments on record, we are proud of what we have accomplished so far." Young added, "Our CSD and value juice momentum continues and, together with expanded distribution of Crush, we're off to a solid start in 2009. The strength of our brands, the passion of our people and strong relationships with our retail partners and bottlers, along with the realization of a strengthened company owned route-to-market, provide the fuel that will support our growth plans for many years to come."

Source : Equity Bulls

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