Snapple 2011 Annual Report Download - page 52

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32
Year Ended December 31, 2010 Compared to Year Ended December 31, 2009
Consolidated Operations
The following table sets forth our consolidated results of operation for the years ended December 31, 2010 and 2009 (dollars
in millions).
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Depreciation and amortization
Other operating expense (income), net
Income from operations
Interest expense
Interest income
Loss on early extinguishment of debt
Other income, net
Income before provision for income taxes and equity in
earnings of unconsolidated subsidiaries
Provision for income taxes
Income before equity in earnings of unconsolidated
subsidiaries
Equity in earnings of unconsolidated subsidiaries, net of tax
Net income
For the year ended December 31,
2010
Dollars
$ 5,636
2,243
3,393
2,233
127
8
1,025
128
(3)
100
(21)
821
294
527
1
$ 528
Percent
100.0%
39.8
60.2
39.6
2.3
0.1
18.2
2.3
(0.1)
1.8
(0.4)
14.6
5.2
9.4
—
9.4%
2009
Dollars
$ 5,531
2,234
3,297
2,135
117
(40)
1,085
243
(4)
—
(22)
868
315
553
2
$ 555
Percent
100.0%
40.4
59.6
38.6
2.1
(0.7)
19.6
4.4
(0.1)
—
(0.4)
15.7
5.7
10.0
—
10.0%
Percentage
Change
2%
3
(6)
(5)
(5)%
Volume (BCS)
Volume (BCS) increased approximately 2% for the year ended December 31, 2010 compared with the year ended December 31,
2009. CSDs increased 2% and NCBs increased 3%. In CSDs, Crush increased 18% compared with the year ago period due to
expanded distribution, the launch of Cherry Crush during the first quarter of 2010 and the limited time offering of the Lime
extension. Dr Pepper volume increased 3% compared with the year ago period, which resulted from increases in our regular and
diet extensions partially offset by decreases in Dr Pepper Cherry and Cherry Vanilla. Our Core 4 brands were down 1% compared
to the year ago period as a high single-digit decline in Sunkist soda, a mid single-digit decline in 7UP and a low single-digit decline
in A&W were partially offset by a double-digit increase in Canada Dry. Peñafiel volume decreased 8% due to decreased sales to
third party distributors. Squirt volume increased 5%. In NCBs, 10% growth in Snapple was due to the successful restage of the
brand, the growth of value offerings and increased marketing. A 3% increase in Mott's was the result of new distribution and strong
brand support. Additionally, a 6% increase in Hawaiian Punch was partially offset by declines in third party NCB brands, such as
AriZona.
Although volume (BCS) increased 2% for the year ended December 31, 2010, compared with the year ended December 31,
2009, sales volume was flat for the same period. The sales volume decreased as a result of a decline in contract manufacturing,
which is not included in volume (BCS) and lower concentrate sales as third-party bottlers purchased higher levels of concentrate
during the fourth quarter of 2009.
In both the U.S. and Canada and in Mexico and the Caribbean, volume increased 2% compared with the year ago period.