US: Coca-Cola Bottling Co Consolidated slows profits slide in Q2

• H1 net profits fall by 10% to US$15.3m
• Sales in six months to end of June rise by 3.3% to $807.9m
• Operating profits come in flat, down 0.9% at $47.2m
• Lower raw material costs forecast to rise in H2

Coca-Cola Bottling Co has reported a double-digit drop in first-half net profits, but a rise in volumes and a lower-than-expected increase in raw material costs helped boost revenue growth.

Net profits in the six months to the end of June fell by 10% to US$15.3m on the previous year, the US Coca-Cola bottler said yesterday (8 August). Sales were up slightly, by 3.3% to $807.9m in the period. 

Operating profits were flat, falling by 0.9% to $47.2m.

In Q2, net profits fell by 3.2% to $10.7m, while sales were up by 1.8% to $430.7m.

Frank Harrison, the group's chairman & CEO, said revenue and gross margin growth in H1 and Q2  was driven by "slightly higher volume, increased pricing, and lower than expected cost increases in certain raw materials".

He added: "We continue to seek innovation to deliver value to our customers through more targeted packaging, promotions and product enhancements."

In May, the group reported a marked drop in Q1 net profits, down by 22.8% to $4.6m.

Looking ahead, William Elmore, the group's president & COO, sounded a warning about raw material costs. "While raw material costs have been lower than expected during the first half of 2012, we anticipate that certain raw material costs, primarily sweetener derived from corn, will be higher in the second half of the year,” he said. 

For the company's official statement, click here.

For the firm's Q1 performance, click here.