US: CCE Q2 slips, but FY still set to rise
Coca-Cola Enterprises has posted a slide in second quarter net profit, despite a lift in sales.
The US-based Coca-Cola manufacturer and distributor said yesterday (26 July) that net profit for the three-month period was down to US$270m from $339m in the correspondng period a year earlier. Sales in the quarter, however, were up by 4% to $5.6bn.
Excluding charges, however, the company saw non-GAAP net income lift to $281 from $273m.
In North America, high prices for raw materials, specifically aluminium and sweetener, impacted results in the quarter. While sparkling beverage volumes fell by 4.5% - though Coca-Cola Zero and energy drinks each achieved growth of more than 30% - still beverages grew in a mid single-digit range reflecting low single-digit growth in water and high single-digit growth in Powerade. Total European volume in the quarter grew by 2%, driven by Coca-Cola Zero growth in all territories and growth in still beverages led by Capri Sun and Oasis. Coca-Cola trademark brands grew 1.5% in the region.
"Throughout our territories, we are executing our operating plans and strengthening our business with successful brand and marketplace initiatives even as we continue to manage through a challenging North American cost environment," said John Brock, company president and CEO. "Importantly, our restructuring efforts are on track as we work to enhance service to our customers and increase efficiency and effectiveness.
"Going forward, we also are encouraged by the opportunities that lie ahead as we incorporate important new brands and products into our portfolio. The impressive line of still beverages from both FUZE and Campbell's are examples of our commitment to our long-term strategic objective to grow the value of our existing brands and expand our product portfolio."
The company also upped its full year EPS forecast by around 8%, now targeting between $1.27 to $1.32.
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