Dr Pepper Snapple shares lose their fizz after firm delivers downbeat profit outlook
Dr Pepper Snapple Group disappointed investors with a warning that full-year profit for 2016 could fall short of expectations.
The company, which owns the Schweppes, Canada Dry and Snapple brands among others, reported profit of $936m (£654m) for the fourth quarter of 2015, up from $895m in the same period of the previous year. For the year, profit dropped to $3.63bn from $3.72bn in 2014.
Quarterly sales were up to $1.55bn from $1.51bn, while yearly sales grew to $6.28bn from $6.12bn.
However, the group said it expects foreign currency issues to hit sales and earnings in 2016.
"Collectively, foreign currency translation and transaction are expected to negatively impact net sales by approximately two per cent and core earnings per share growth by approximately four per cent," the company said.
"The fundamentals of our business are strong, and as we move into 2016 our teams will be focused on driving growth across our priority brands through strong consumer communication," said Dr Pepper Snapple boss Larry Young.
Shares in the company were down by 2.55 per cent in afternoon trading.