Executives at Dubai Refeshments were on somewhat of a sugar rush yesterday as the company doubled its profits in the first half of the year.
The exclusive bottler and distributor of Pepsi in the UAE injected some fizz into the start of earnings season with a 15 per cent cent increase in revenues compared to 2010, mainly due to an increase in the price of cans.
"The UAE has benefitted from the price increase we took at the beginning of year, but this has been offset by an increase in costs of raw materials and a reduction in volumes," said Tarek el Sakka, general manager at Dubai Refreshments.
Along with its major competitor Coca-Cola, the company increased the price of a can of Pepsi from Dh1 to Dh1.5 in January.
"Volumes are down as expected, we are operating on plan as a result of the price increase," said Mr Sakka. "It's very much in line with the plan in our growth markets."
Revenues increased from Dh386 million in the first six months of last year to Dh444m inn the same period this year.
Profits increased my a 109 per cent to Dh61.1m from Dh29.2m