* Fourth-quarter earnings/share $0.82 vs est $0.85
* Revenue $1.48 bln vs est $1.49 bln
* Expects 2013 earnings/share between $3.04 and $3.12
* Sees revenue growth of 3 pct
* Shares fall as much as 7 pct
(Adds analyst comment, comments from conference call, updates
By Maria Ajit Thomas
Feb 13 Dr Pepper Snapple Group Inc
forecast profit for the current year below analysts' estimates
as the soft drink maker expects raw material costs to continue
to constrain earnings.
Shares of the company, whose brands include 7UP, Sunkist and
Hawaiian Punch, were down 6 percent at $42.51 on the New York
Stock Exchange on Wednesday afternoon.
On a conference call with analysts, Dr Pepper executives
said they expected packaging and ingredients to increase the
total cost of goods by about 2 percent in 2013.
Almost half of this increase is due to the higher cost of
apples, while the remainder is primarily PET used for bottles,
corn for sweeteners and paper board for packaging, Chief
Financial Officer Marty Ellen said.
"(The weak forecast is) not particularly surprising given
the difficult operating environment for North American
beverages," J.P. Morgan Securities analysts wrote in a note to
Coca-Cola Co, the world's largest soft drink maker,
on Tuesday reported lower-than-expected growth in worldwide
sales volumes and softness in the United States due to the slow
"Dr Pepper's results were pretty lackluster and the outlook
didn't give investors much to get excited about," said Sanford
C. Bernstein analyst Steve Powers.
Powers also said Dr Pepper's selling, general and
administrative expenses (SG&A) were a lot higher than expected.
"Their guidance seems to imply further SG&A inflation,"
The company expects full-year profit of $3.04 to $3.12 per
share and sales growth of about 3 percent, implying revenue of
about $6.17 billion.
Analysts were looking for a profit of $3.20 per share on
revenue of $6.17 billion.
Dr Pepper reported fourth-quarter SG&A expenses of $555
million for the quarter ended Dec. 31, up from $553 million a
The company said total volumes declined 1 percent, with
beverage concentrates declining the most.
Profit rose to $170 million, or 81 cents per share, from
$166 million, or 77 cents per share, a year earlier.
On an adjusted basis, Dr Pepper earned 82 cents per share,
below the average analyst estimate of 85 cents, according to
Thomson Reuters I/B/E/S.
Revenue rose 2 percent to $1.48 billion, slightly below
market estimates of $1.49 billion.
(Reporting By Maria Ajit Thomas in Bangalore, Editing by
Saumyadeb Chakrabarty, Maju Samuel)