Dr Pepper Snapple Group reported fourth quarter 2016 EPS of $0.90, which included an $0.11 per diluted share loss on the early extinguishment of certain debt.
Article continues below
Reported EPS were $0.97 in the prior year period. Core EPS were $1.04, up 4%, compared to $1.00 in the prior year period.
For the year, the company reported earnings of $4.54 per diluted share compared to $3.97 per diluted share in the prior year. Core EPS were $4.39, up 9%, compared to $4.02 in the prior year.
For the quarter, reported net sales increased 2% on favorable product and package mix, a 1% increase in sales volumes and higher pricing. Net sales was partially offset by 1 percentage point of unfavorable foreign currency translation and unfavorable segment mix.
Reported segment operating profit (SOP) increased 2% as net sales growth, lower logistics costs and ongoing productivity improvements were partially offset by increases in certain operating costs and an $8 million increase in planned marketing investments.
Currency neutral segment operating profit was further reduced by 2 percentage points of foreign currency transaction.
Reported income from operations for the quarter was $335 million, which included $11 million in unrealized commodity mark-to-market gains and $3 million in expenses related to our acquisition of Bai.
Reported income from operations was $322 million in the prior year period, which included a $7 million impairment charge on the Garden Cocktail brand.
Currency neutral core income from operations for the quarter was $330 million compared to $329 million in the prior year. Currency neutral income from operations was further reduced by 3 percentage points of foreign currency transaction.
For the year, reported net sales increased by 3% to $6.44 billion. Foreign currency translation negatively impacted reported net sales by 1%.
Reported income from operations was $1.43 billion, including $52 million in unrealized commodity mark-to-market gains and $3 million in acquisition expenses related to Bai.
Reported income from operations in the prior year was $1.30 billion, which included a $7 million impairment charge and a $5 million unrealized commodity mark-to-market loss.
Core income from operations was $1.38 billion, up 5%, representing 21.5% of net sales compared to 20.9% in the prior year.
Currency neutral core income from operations was further reduced by 2 percentage points of foreign currency transaction. ■