Dubai Refreshments profit up 91%

A price hike on soft drinks implemented earlier this year has helped Dubai Refreshments Company post another strong quarterly performance. The drinks firm, which is the sole franchisee and distributor of PepsiCo products in Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah, reported yesterday it has made a Dh30.7 million net profit in the three months to September, up 91 per cent from the year-before period. In January, the Ministry of Economy announced that soft drink prices were to rise 50 per cent. Along with its major competitor Coca-Cola, Dubai Refreshments Company increased the price of a can of Pepsi from Dh1 to Dh1.50 citing the rising cost of commodities such as tin, sugar and plastic. "In spite of the pressure on sales due to a turbulent economic environment, we managed to achieve an increase in revenue and profits by improvement in sales realisation, optimising the total cost, implementing cost control programmes and exploring new export opportunities," Dubai Refreshments Company said in a statement to Dubai's bourse.