PLANO, Texas, Oct. 27, 2016 /PRNewswire/ -- Dr Pepper Snapple Group, Inc. reported third quarter 2016 EPS of $1.29, including a $0.09 tax gain, compared to $1.05 in the prior year period. Core EPS were $1.17, up 8% compared to $1.08 in the prior year period. Year-to-date, the company reported earnings of $3.64 per diluted share compared to $3.00 per diluted share in the prior year period. Core EPS were $3.35, up 11% compared to $3.02 in the prior year period.
For the quarter, reported net sales of $1.68 billion increased 3% on favorable product and package mix, a 1% increase in sales volumes and higher pricing. Net sales growth was reduced in the quarter by 1 percentage point of unfavorable foreign currency translation. Reported segment operating profit (SOP) increased 3%, or $12 million, on net sales growth, lower logistics costs and ongoing productivity improvements, which were partially offset by a $16 million increase in planned marketing investments and increases in certain other operating expenses.
Reported income from operations for the quarter was $373 million, which included $9 million in unrealized commodity mark-to-market gains and a $5 million non-cash gain on the step-acquisition of our joint venture Aguafiel business in Mexico. Reported income from operations was $337 million in the prior year period, which included $9 million in unrealized commodity mark-to-market losses. Core income from operations for the quarter was $364 million, up 5%, and represented 21.7% of net sales compared to 21.3% in the prior year period.
Year-to-date, reported net sales of $4.86 billion increased 3%. Reported income from operations was $1.10 billion, including $41 million in unrealized commodity mark-to-market gains. Foreign currency translation negatively impacted reported net sales and reported income from operations by 1%. Reported income from operations in the prior year period was $976 million, which included $5 million in unrealized commodity mark-to-market losses. Core income from operations was $1.06 billion, up 8%, representing 21.7% of net sales compared to 20.8% in the prior year.
DPS President and CEO Larry Young said, "I'm proud of our teams for continuing to drive strong performance across our portfolio in a competitive and fragmented market."
Young continued, "We gained both dollar and volume share in our largest category, CSDs, in Nielsen measured markets, and our strategy of driving aligned communication and execution across our priority brands is driving positive results. Our allied brand partnerships are allowing us to compete in fast growing categories, and Rapid Continuous Improvement (RCI) continues to be the foundation on which the organization operates."
BCS Volume
For the quarter, BCS volume increased 2%, with carbonated soft drinks (CSDs) increasing 2% and non-carbonated beverages (NCBs) flat.
By geography, U.S. and Canada volume increased 1%, and Mexico and the Caribbean volume increased 4%.
In CSDs, Dr Pepper increased 1% driven by growth in both our fountain foodservice and bottle-can businesses. Our Core 4 brands increased 2%, as a mid-single-digit increase in Canada Dry and a low-single-digit increase in Sunkist were partially offset by low-single-digit decreases in A&W and 7UP. Squirt increased 7% in the quarter on strong growth in both the U.S. and Mexico, and Schweppes grew 9%. Crush grew 4%, and Peñafiel grew 1%. Fountain foodservice volume increased 2% in the quarter.
In NCBs, our water category grew 16% on strong growth in Bai brands, FIJI and Aguafiel. Clamato increased 5% in the quarter, and Snapple was flat. Hawaiian Punch decreased 6% primarily as a result of reduced promotional activity and higher pricing for our single-serve packages, and Mott's decreased 6% in the quarter, as growth in sauce was more than offset by decreases in juice.
Sales Volume
Sales volumes increased 1% in the quarter and year-to-date.
Beverage Concentrates
Net sales increased 5% in the quarter on concentrate price increases taken earlier in the year, favorable product mix and a 1% increase in concentrate shipments. SOP was flat, as net sales growth was offset by a $10 million increase in planned marketing investments.
Packaged Beverages
Net sales increased 4% in the quarter on favorable product and package mix, lower discounts driven by a favorable trade accrual adjustment and higher pricing. SOP increased 7% on net sales growth, lower logistics costs and ongoing productivity improvements. These increases were partially offset by a $6 million increase in planned marketing investments and increases in certain other operating expenses. Full report.
