Dr Pepper Snapple (DPS), a US-based producer of flavoured beverages in North America and the Caribbean, has registered a 2% increase in net sales to $1.362bn during the first quarter ended 31 March 2012, compared to $1.33bn during the same period in 2011.

Net sales were affected by lower branded volumes, a reclassification of certain customer transportation allowances that were previously confirmed as selling, general and administrative expenses and foreign currency conversion.

DPS registered fall in segment operating profit (SOP) by 4%, or $12m, as the benefits of higher sales and productivity improvements were affected by increased input cost in packaging and ingredients, rise in other operating cost and raise in marketing expenses of $8m.

The beverage company’s operational income during the 2012 first quarter was $192m, which was inclusive of $6m of unrealised mark-to-market gains, whereas during the same period in 2011 the operational income was $202m including $2m of unrealised mark-to-market gains.

DPS president and chief executive officer Larry Young said despite expected commodity headwinds and higher pricing across their CSD brands and Hawaiian Punch and Mott’s trademarks, the business continued to perform well in the quarter, and consistent with the expectations.

"We outperformed the industry in both volume and dollar share in both the CSD and Tea categories," Young said.

"Now in its second year, Rapid Continuous Improvement (RCI) is delivering results for our customers and in our financial performance.

"With solid marketing plans in place for the remainder of the year and RCI further expanding across the organization, I remain confident in our plans for the year."

In the first quarter of 2012, bottler case sales volume remained unchanged with carbonated soft drinks increased by 2% and non-carbonated beverages came down by 7%.

In carbonated soft drinks segment volume of Dr Pepper brand went up 2% whereas Canada Dry, A&W and Sunkist soda all grew in single digit, and 7up rose by low-single digit.

Peñafiel and Squirt also registered growth, and Crush volume came down and Sun Drop declined double-digits.

DPS fountain foodservice volume increased 5% in 2012 first quarter.

In non-carbonated beverages category, Hawaiian Punch volume came down 21% and Mott’s volume fall 16% due to cycling price increases that were initiated in 2011 mid-year.

Clamato brands volume went up 27% and Snapple volume grew 5% in the 2012 first quarter.

Region wise, the US and Canada volume remains unchanged, and Mexico and the Caribbean registered 4% rise in volume.