Dr Pepper Snapple Group Inc. (NYSE: DPS) reported fourth quarter 2013 EPS of $0.78 compared to $0.81 in the prior year period. Core EPS were $0.97, up 18.3 percent compared to $0.82 in the prior year.
For the quarter, reported net sales decreased 1 percent. Sales volume declines of 4 percent and less favorable trade adjustments were partially offset by favorable mix and price. Reported segment operating profit (SOP) decreased 7 percent, or $27 million, as a $56 million non-cash charge due to our intention to withdraw from a multi-employer pension plan and the volume decline were partially offset by a year-over-year LIFO benefit of $25 million and favorable price and mix. Reported income from operations for the quarter was $264 million, including $3 million of unrealized commodity mark-to-market losses. Reported income from operations was $292 million in the prior year period, including $1 million of unrealized commodity mark-to-market losses. Core income from operations was $323 million, up 10.2 percent compared to the prior year period.
For the year, reported net sales were flat. Reported income from operations was $1,046 million, compared to $1,092 million in the prior year period. Core income from operations was $1,123 million, up 3.7 percent compared to the prior year period. For the year, the company reported earnings of $3.05 per diluted share compared to $2.96 per diluted share in the prior year period. Excluding a $16 million unrealized commodity mark-to-market loss in the current year and a $17 million unrealized commodity mark-to-market gain in the prior year period, and certain items affecting comparability in both years, Core EPS were $3.20 compared to $2.92 in the prior year period.
DPS President and CEO Larry Young said, “I am proud of the team’s ability to remain focused and execute against our strategy during a challenging year. We continued to gain distribution and availability across our key brands and packages and grew volume share and held dollar share in the highly competitive CSD category.”
Young continued, “Our Core 4 and RC TEN platform is bringing lapsed consumer occasions back to the CSD category, and Rapid Continuous Improvement (RCI) continues to provide meaningful improvements while strengthening organizational capabilities. As we move into 2014, our teams will continue to build the TEN platform with programming focused on driving awareness and trial, provide consumers with balanced beverage options and execute with excellence in the marketplace.”