What Is Dr Pepper Snapple’s Revenue And EBITDA Breakdown?

March 31st, 2017 by Trefis Team
DPS: Dr Pepper Snapple logo
DPS
Dr Pepper Snapple

DPS Q&A 1

Dr Pepper Snapple (NYSE:DPS) has a mammoth portion of its revenue come from the North America carbonated drinks division itself. This ostensibly could present a problem for the manufacturer since CSDs are losing favor with their once loyal customers. The U.S. CSD market is expected to have declined for the twelfth consecutive year in 2016. The per capita consumption was already down to 154 liters last year — the lowest level since 1985. Now, Dr Pepper’s growth is heavily dependent on the U.S. CSD market, with around 82% of the company’s net volume in this category and 82% of the company’s net volume in the U.S. itself. Despite a portfolio heavily skewed towards a low-growth category, Dr Pepper has managed to grow its CSD volume in North America.

DPS Q&A 1-1

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Why Dr Pepper has managed to grow is also because of its relatively small market share. Dr Pepper is taking away share from other companies, especially PepsiCo, which has lost share continuously in the last few years, in a mature U.S. CSD market. But mostly, Dr Pepper has been able to grow its revenue per case due to positive package and price mix, which has boosted its CSD revenue in North America, which formed 93% of the company’s net sales in 2016. With the impact of negative currency translations in Latin America expected to drag down Dr Pepper’s revenue and profit this year again, the company seems to be in good stead because it derives a hefty chunk of its earnings from the domestic market itself.

Have more questions on Dr Pepper Snapple? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Dr Pepper Snapple

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