Pepsi-Cola Products Philippines Inc. (PCPPI) and the Pepsi Cola Employee Workers Unions (PEWU-allied with FCCU-SENTRO) based in PCPPI’s Davao Operations conducted negotiations for the renewal of their Collective Bargaining Agreement. As no agreement has been reached by the parties, PCPPI was served a notice of strike on the grounds of refusal to negotiate. Both parties agreed to submit the negotiation for mediation to continue the bargaining with a view to finally reaching a mutually-beneficial agreement. As of Nov. 6, 2019, both management and union panels agreed for a marathon discussion on Nov. 25, 27 and 28 with the aim in mind of closing a mutually beneficial collective bargaining agreement. PCPPI’s Davao operations and sales continue to run as normal without business disruption and assures its customers of uninterrupted services.


The Group’s sales growth continues to be driven by healthy consumer demand, with same store sales growth of 6.8%. Revenue growth was achieved against a 3% decline in the Group’s total floor area, as the Group continues with its strategy to strengthen its store network and focus store openings on developed brands in developed locations. The Group also generated operating income of P926.5 million during the first nine months of 2019, with operating margin increasing by 90 basis points to 6.2%, as against the same period last year. Healthy top line growth combined with operating margin expansion drove over-all results for the first nine months of 2019, with nine month core recurring income, or income excluding one time write offs related to store rationalizations, increasing by 30% y-o-y to P566.1 million and nine month net income increasing by 42% y-o-y to P521.3 million.



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Article by: Ashok MBA – Strategic Financial Coach


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