Pepsi-Cola Products Philippines, Inc.
cash dividend of 0.0660/share
ex-date 7 May 2015
payable on 5 June 2015
nice PIP! yan ang inaantay ko sa iyo! hehe caveat!Big Grin

[Image: pip520_zpsjqrr4djx.jpg]
Balita para sa mga ipiteros kay PIP.. Big Grin

Pepsi to manufacture Cheetos, Lay's in PH

Listed beverage and snacks maker Pepsi Cola Products Philippines Inc. (PCPPI) eyes hitting about $1 billion in retail sales revenues this year, as it makes its first foray into snacks manufacturing in the country.

PCPPI will manufacture the popular Cheetos and Lay's snacks in the Philippines, only its second in Asia after Bangladesh at its just inaugurated P500-million Cabuyao, Laguna facility.

This reflects PepsiCo's ongoing drive to ensure the integration of its food and beverage portfolio across multiple platforms, including manufacturing and go-to-market execution.

Sanjeev Chadha, Pepsi's chief executive officer for Asia, Middle East and North Africa, said the seamless production of beverages and food will help PepsiCo grow in the increasingly important snacks market by three times in 10 years.

"We are delighted with this opportunity to produce internationally-renowned snacks products for the Philippine market, as we move towards our vision of becoming a premier food and beverage company in the Philippines," said Furqan Ahmed Syed, president of PCPPI.

The local snacks market is increasingly competitive, with Universal Robina Corp., maker of Jack n Jill; Liwayway Marketing Corp. of Oishi snacks; and Leslie Corp., maker of Clover.

In May last year, PCPPI announced it would make and distribute a range of PepsiCo's popular snack products and flavors to the Philippines' 100 million consumers.

"We're pleased to share the exciting variants of Cheetos at affordable price points and within reach of the snack-loving Filipino consumers," Jika Dalupan, PCPPI vice president for corporate affairs and communications added.

For January-September 2015, Pepsi said profit rose driven by strong demand for its beverages. These include the flagship Pepsi-Cola as well as 7Up, Gatorade and Tropicana.

Net income during the nine-month period hit P706.35 million, up 14 percent while revenues during the period also rose 7.8 percent to P23.68 billion.

Income for the third quarter alone stood at P146 million, up 5.1 percent.

...wag na magsopdrinks, di maganda sa health Tongue

Pepsi-Cola Q1 earnings fall by 42%

EARNINGS of Pepsi-Cola Products Philippines, Inc. (PCPPI) fell by nearly half in the first three months of 2017 due to flat sales and higher operating expenses.

PCPPI reported that its net income dropped 42% to P93 million in the first quarter of 2017, from P159 million in the comparable period last year, according to a regulatory filing.

After taking into account sales returns and discounts, net sales slid 2% to P6.85 billion in the three-month period, from P7 billion in 2016 when demand got a boost from election-related spending.

Operating expenses accelerated by 3% to P1.37 billion from P1.33 billion to enable future growth, the beverage firm said. Capital expenditure for capacity and containers amounted to P900 million during the period.

Cost of goods slid by an annual 2% as a result of lower sugar prices and productivity initiatives.

“Management believes in the long-term health of the business and thus continued to invest in capex and cost ahead of revenue,” PCPPI said.

PCPPI manufactures and sells beverage brands such as Pepsi-Cola, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting, and Premier. Last year, the company inaugurated its snacks manufacturing facility in Laguna to produce global snack brand Cheetos as part of the company’s long-term strategy to “future-proof” its business and capitalize on the growth prospects in the country.



SRA blocks Pepsi’s planned sale of HFCS stocks to Lucio Tan group

Citing Pepsi-Cola Products Philippines, Inc.’s (PCPPI) incoherence and ambivalence, the Regulatory Administration has blocked the plan of Pepsi-Cola Products Philippines, Inc. (PCPPI) to sell its unused high-fructose corn syrup (HFCS) to Lucio Tan group that could have saved the beverage firm from further losses.

In an interview, SRA Board Member Roland Beltran said the Board was unconvinced of PCPPI’s letter of reconsideration and ordered “immediate destruction” of the unused sweetener.

“The Sugar Board is unconvinced of Pepsi’s letter of reconsideration. The Sugar Board noticed the ambivalence of Pepsi from the start. It was not sure of the remedy sought for,” said Beltran.

Last week, PCPPI was said to be selling 9,196 MT of the stocks to Lucio Tan-owned Asian Alcohol Company (AAC). AAC is the second biggest distillery in the Philippines located in Negros Occidental. It has distillation process that uses molasses, yeast, water and other ingredients.

Beltran admonished PCCPI for their being ambivalent and incoherent decision on what to do with their 15,000 metric ton HFCS.

Beltran explained that the SRA Board already denied PCPPI’s request to re-consider its decision to reclassify PCPPI’s HFCS stocks from D to B and have it destroyed immediately. D sugar is meant for world market exports, while B is for the domestic market.

At first, he said, the SRA reclassified as C the HFCS, then upon Pepsi’s request, they had it reclassified as D upon representation that it will sell the HFCS to Vietnam. Then PCPPI filed another request to further reclassify from D to B without providing any plans of disposal. C is reserved sugar and for other purposes.

To recall, PCPPI, together with other soft drink manufacturers, earlier requested to dispose their HFCS, which they use as a cheaper alternative to sugar, to avoid the higher tax newly imposed on sugar-sweetened beverages (SSB).

Drinks with HFCS have been slapped with a tax rate of R12 per liter, which is higher than the tax rate of R6 per liter for SSBs.

Because of this, most beverage companies shifted their formula back to 100 percent sugar, from the mix of 60 percent sugar and 40 percent HFCS.

SRA approved this request with the issuance of Sugar Order (SO) No. 3 in January. The order showed that SRA has already allowed some companies to export their unused HFCS.

But PCPPI, even if it was ready to do so, faced some challenges. First, it was supposed to export its unused HFCS to Suntory PepsiCo Vietnam Beverage but the latter found it difficult to accept it due to strict importation rules of Vietnam.

PCPPI also found it hard to ship the HFCS back to China where it got it because it has to be stored in a stainless steel packaging.

Finally on March 27, SRA already decided that PCCI should destroy all of these unused stocks, which stood around 15,000 metric tons (MT).

While committing to follow SRA’s order, PCPPI made a few other requests to the agency, which already “confused” the agency, Beltran said.

SRA also received another PCPPI letter informing the agency that one company will under take the destruction of HFCS.

“At this point, the Sugar Board is already confused of the approach taken by Pepsi. Pepsi has to make a coherent and plausible presentation, not in a confusing manner as it had earlier dealt with the regulatory agency,” he added.



DOLE investigating Pepsi, Jollibee for retrenchment of workers

THE Department of Labor and Employment (DOLE) said it is investigating beverage giant Pepsi-Cola Products Philippines for its alleged violation of labor laws after it recently retrenched about 1,000 workers.

In an interview, DOLE Undersecretary Joel B. Maglunsod said they plan to look into the complaints filed by Pepsi’s casual employees.  He said the case of Pepsi is “complicated,” since it involves issues of illegal contractualization and illegal dismissal.

Members of the Pepsi-Cola Workers’ Association (PCWA) held a joint demonstration with the workers of Jollibee Food Corp. Worldwide Services-Logistics on Monday in front of DOLE’s main office in Intramuros, Manila, to protest against their employer’s supposed violation of labor laws.

PCWA Vice President Ricardo Gandalla said their employment was abruptly terminated by Pepsi after the Department of Environment and Natural Resources shut down the deep wells it used in its Muntinlupa plant to reduce its operational costs.

The PCWA membership is comprised by casual Pepsi employees.

“Since there is no water [from the deep wells], they were not able to operate. They told us they will not be employing anymore casual [workers],” Gandalla said in an interview.

Maglunsod said Pepsi already underwent labor inspection last December, but he has yet to get its final results.

He said they scheduled a meeting with the official bargaining unit of Pepsi, PCWA and the Pepsi management in a series of meetings up to next week to get more details on the issue.

Aside from the displacement issue, Maglunsod said they will also look into Pepsi’s contractors to see if their operations are legal.

DOLE said it will conduct the same consultations for the new illegal contractualization case of JFC.

Maglunsod said they are verifying the complaints filed by some of JFC’s contractual workers.

In an interview, Rogelio Magistrano, the president of the association, said JFC prematurely terminated the contract of their contractor, Toplis Solution Inc. (TIS), after getting word of their plan to form a labor union.

“During the midnight of June 17, the management decided to terminate the contract. The contract was supposed to end on June 30,” Magistrano said.

He said the termination of TIS contract would affect 400 workers.

Magistrano said the workers should be regularized since their work in the JFC’s warehouse logistic is directly related to the company’s main business operations.

Like the case of Pepsi, Maglunsod said JFC Worldwide Services-Logistics already underwent a labor inspection.

“We still have no result [from the inspection]. The process is still ongoing, but Jollibee already decided to retrench its workers,” Maglunsod said.

Last month, DOLE confirmed some of JFC’s offices are engaged in labor-only contracting–the illegal labor practice of contracting jobs directly related to the operations of the company.

DOLE ordered the fastfood chain to regularize 14,960 contractual workers. The contractual workers of JFC Worldwide Services-Logistics are not included in the said regularization order.

While their respective cases are pending, Maglunsod said they will provide livelihood assistance to the displaced workers of Pepsi and JFC.



Pepsi Cola Philippines in hot water for operating deep wells

The Department of Environment and Natural Resources-National Water Resources Board (DENR-NWRB) has slapped softdrinks manufacturer Pepsi Cola Products Philippines Inc. a fine of P11.8 million for operating six deep wells in Muntinlupa City without the appropriate permit.

The NWRB ordered the company to pay a penalty of P11.58 million.

“However, this has increased to P11.8 million as it was only on June 11 that operatives of NWRB, with support from Task Force DENR Enforcers Metro Manila and the Philippine National Police, were able to enter the company’s premises and successfully sealed the illegal deep wells,” it said in a statement on Wednesday.

The softdrinks maker declined to comment on the matter.

“We cannot disclose details of our legal proceedings with NWRB at this point,” the company said in a separate statement sent to GMA News Online.

“We are still in discussion with the board and working on finding a speedy resolution to this issue.”

Archie Asuncion, head of the NWRB Litigation and Adjudication Unit, said the penalty imposed on Pepsi Cola Philippines was set at P1,000.00 per deep well per day, from Jan. 10, 2013 to June 11, 2018.
“It will be recalled that on June 11, 2018, operatives from NWRB, DENR and PNP raided the softdrinks plant in Muntinlupa to enforce ... Supreme Court decision G.R. No. 22166 entitled Pepsi Cola Products Philippines Inc. vs. National Water Resources Board, which has become final and executory on April 17, 2017,” the DENR said.

The Pepsi facility was raided on orders of Environment Secretary Roy Cimatu, through Undersecretary for Solid Waste Management and Local Government Units Concerns Benny Antiporda.

The NWRB monitors and regulates the use of water resources.

Sealing “illegal deep wells” was done to lessen the depletion of groundwater resources in the country, it said
“The sealing was done after the raiding team disconnected the riser and submersible pumps of the deep wells from the power supply and computer box,” Antiporda said.
Citing a 2004 study commissioned by the NWRB, Antiporda said the groundwater was already at a “critical” level and its extraction has been causing “subsidence” or gradual caving in of the land area.



...nakalimutan na ito...tinamaan ng higher tax on sugary drinks

Pepsi Philippines swings to loss

PEPSI-COLA Products Philippines, Inc. (PCPPI) reported a net loss in the third quarter of 2018, hampered by the impacts of higher taxes following the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

In a regulatory filing, the manufacturer of bottled beverages posted a loss of P32.55 million in the July to September period, against a profit of P187.85 million in the same period a year ago. This came amid a 2% increase in gross sales to P9.07 billion.

The slight increase in gross sales is attributed to excise-tax driven price increases, despite lower volumes for the period.

PCPPI is among the food and beverage companies directly hit by the passage of TRAIN law, which imposed taxes on sugar-sweetened beverages (SSBs). The law enacted last January placed an excise rate of P6 per liter on drinks containing caloric or non-caloric sweetener and P12 per liter on drinks containing high fructose corn syrup (HFCS).

In January alone, the company paid P666 million in taxes due to TRAIN.

On a nine-month basis, PIP booked a net loss of P81.19 million, even as revenues went up by 5% to P28.07 billion. This translates to losses per share of two centavos.

“The effect of the TRAIN law on volume and cost continue to adversely impact the company’s profitability with net loss at P81 million year-to-date,” PCPPI said.

PCPPI said it will continue to invest for future growth despite the decline in volumes. It spent a total of P1.7 billion in capital expenditures during the January to September period.

Incorporated in 1989, PCPPI is the license bottler of PepsiCo, Inc. and Pepsi Lipton International Limited in the country. Beverage brands under its portfolio include Pepsi-Cola, 7Up, Mountain Dew, Mirinda, Mug, and Gatorade, among others.

The company is valued at around P5.76 billion, in terms of market cap. 


One should take care before investing in the market whether the market will remain stable or not. This also depends upon the political stability of the country. This means the investment is directly linked with the stable markets. Stability surely increases their confidence in investing in the market.

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