US: Coca-Cola Bottling Co Consolidated posts YTD profits fall

• Net profits in year-so-far drop by 5% to US$25.4m
• Net sales increase by 3.3% to $1.23bn over same period   
• Operating profits rise by 2.8%  to $74.6m
• Group volumes show “slight increase” 

Coca-Cola Bottling Co Consolidated has posted a slight drop in year-to-date net profits, but the company continued to slow its profits slide as volumes and sales rose.

Net profits fell by 5% to US$25.4m in the nine months to the end of September, the US' largest independent Coca-Cola bottler said yesterday (6 November). Net sales increased by 3.3% to $1.23bn over the same period while operating profits rose by 2.8% to $74.6m.

The results improved on first-half numbers, where net profits slid by 10%, and continued the bottler's slowing of losses over the past few quarters. YTD results last year saw nine-month profits drop by 17.6%. 

Sales in the first-half were also up, allowing the company to remain optimistic about underlying trends.

“We are pleased to report solid growth in our revenue and gross margin for both the third quarter and year-to-date 2012,” said Coca-Cola Consolidated chairman & CEO J. Frank Harrison.

Sales growth was driven by a slight volumes increase, primarily in still beverages, and "modest" price increases, Harrison said. 

"Our gross margin growth was attributable to both higher pricing and lower than expected increases in our raw material costs," he added. "We continue to focus our efforts on innovation, process improvements and efficiency in our operations to continue to be able to grow revenue and gross margin.”

Third-quarter performance was also positive, with net profits increasing by 3% to $10.1m in the three months to the end of September and net sales up by 3.4% to $419.8m. Operating profits increased by 9.9% to $27.4m.

Coca-Cola Consolidated released its results after the markets closed, with shares standing at $69.09.

To read the company's official statement, click here.