Pepsi-Cola Products Philippines, Inc. (PCPPI) continued its strong performance into the 2nd quarter of its current fiscal year ending June 2010, registering high growth rates in operating income and net income.

The company performed credibly in terms of sales and the bottomline in spite of the proliferation and growing presence of low priced beverage products.

From previous year levels, revenues grew 7 percent for the quarter and 8 percent for the semester ending December 2009. The growth was attributed mainly to the successful execution of its distribution expansion and affordable pricing strategies for non-carbonated beverages (NCBs) that enabled the company to meet growing customer demand for healthy beverages. The sustained growth in NCBs cushioned the impact of softer markets and prices for carbonated beverages across the industry.

With the 7.0 percent growth in net sales, and the lower increase of only 3.0 percent in operating expenses, operating income grew by a hefty 37 percent to P289 million for the three months ending December 2009.

Net income grew by 53 percent to P201 million for the quarter and 58 percent for the semester ending December 2009.

The gains were attributed to various initiatives on brand positioning, packaging innovations, production capability enhancements, distribution expansion and pricing, among others; which are all anchored on the key strategy of effectively responding to changes in consumer preferences and market dynamics.