Dr Pepper Snapple is scheduled to announce its Q4 and full year results on February 17, and we expect the beverage manufacturer to cap off 2015 with solid growth, especially as most of its sales are from the home market. Both Coca-Cola and PepsiCo have already announced their full-year results, which suggest that while macroeconomic volatility in international markets, with subdued demand and depreciating local currencies, continued to drag down financials, strong growth in North America, particularly in the U.S., helped to boost overall results. As crucial international markets such as Russia, Brazil, and China slowed down during 2015, companies looked towards the home market for growth. This bodes well for Dr Pepper, which generates approximately 90% of its net sales from the U.S. The company is, thus, less exposed to the risk associated with currency fluctuations — which turned out to be one of the bigger culprits depressing results for America-based multinationals last year.
|