PLANO, Texas (AP) — Dr Pepper Snapple Group's third-quarter net income rose 7 percent as the company raised prices to offset higher costs.
Soft drink makers are facing higher costs for ingredients and packaging. The company said Wednesday it expects packaging and ingredient costs will increase its cost of goods sold by 7 percent to 9 percent in 2011.
Net income rose to $154 million, or 71 cents per share, from $144 million, or 60 cents per share last year. Analysts expected net income of 70 cents per share, according to FactSet.
Revenue rose 5 percent to $1.53 billion, matching analyst expectations.
Carbonated soft drink volume was flat, while non-carbonated soft drink volume fell 5 percent.
The company's Sun Drop, Canada Dry, Squirt, 7Up and A&W soft drink volume all grew. Dr Pepper volume was flat and Crush and Sunkist soda volume declined.
Dr Pepper, based in Plano, Texas, reaffirmed its full-year guidance of net income of $2.70 to $2.78 per share on a revenue increase of 3 percent to 5 percent. That implies revenue of $5.81 billion to $5.92 billion. Analysts expect net income of $2.74 per share on revenue of $5.91 billion.