Snapple 2014 Annual Report Download - page 31

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Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Consolidated Operations
The following table sets forth our consolidated results of operations for the years ended December 31, 2014 and 2013 (dollars
in millions, except per share data):
For the Year Ended December 31,
2014 2013 Percentage
Dollars Percent Dollars Percent Change
Net sales $ 6,121 100.0% $ 5,997 100.0% 2%
Cost of sales 2,491 40.7 2,499 41.7
Gross profit 3,630 59.3 3,498 58.3 4
Selling, general and administrative expenses 2,334 38.1 2,272 37.9
Multi-employer pension plan withdrawal — — 56 0.9
Depreciation and amortization 115 1.9 115 1.9
Other operating expense, net 1 — 9 0.2
Income from operations 1,180 19.3 1,046 17.4 13
Interest expense 109 1.8 123 2.0
Interest income (2) — (2) —
Other expense (income), net — — 383 6.4
Income before provision (benefit) for income taxes and
equity in earnings of unconsolidated subsidiaries 1,073 17.5 542 9.0 98
Provision (benefit) for income taxes 371 6.0 (81)(1.4)
Income before equity in earnings of unconsolidated
subsidiaries 702 11.5 623 10.4
Equity in earnings of unconsolidated subsidiaries, net of tax 1 — 1 —
Net income $ 703 11.5% $ 624 10.4% 13%
Earnings per common share:
Basic $ 3.59 NM $ 3.08 NM 17%
Diluted $ 3.56 NM $ 3.05 NM 17%
Volume (BCS). Volume (BCS) increased 1% for the year ended December 31, 2014 compared with the year ended December
31, 2013. In the U.S. and Canada, volume was flat, and in Mexico and the Caribbean, volume increased 5%, compared with the
year ago period. Branded CSD volume increased 1% while branded NCB volume declined 1%.
In branded CSDs, Peñafiel grew 21% in our Latin America Beverages segment as a result of product and package innovation.
Our Core 4 brands increased 2% compared to the year ago period, driven by an 8% increase in Canada Dry partially offset by a
1% decline in 7UP. A&W and Sunkist soda were both flat for the period. Schweppes grew 10% reflecting distribution gains in
our seltzer water and growth in the ginger ale category. These gains were partially offset by a 2% decrease in Dr Pepper, driven
primarily by declines in our diet products, and a 5% decrease in our other CSD brands in total. Crush, Squirt and RC Cola declined
1%, 1% and 2%, respectively.
In branded NCBs, decreases were driven by a 7% decrease in Hawaiian Punch as a result of category declines and increased
competitive activity, a 1% decline in our other NCB brands in total, and a 1% decrease in Mott's as a result of declines in apple
sauce. The decline was partially offset by a 7% increase in Clamato, driven by increased promotional activity, and 3% growth in
our water category primarily driven by new distribution arrangements for Bai 5 and Sparkling Fruit2O and distribution gains in
FIJI and Vita Coco. Snapple increased 1% for the current period as growth in our higher margin Snapple Premium products was
partially offset by our de-emphasis on our value products.