US: Coca-Cola Enterprises bemoans France as FY struggles

By | 7 February 2013

  • Full-year net profits drop by 9.6% to US$677m
  • Net sales in 2012 slip by 2.7% to $8.06bn
  • Operating profits also down, by 10.2% to $928m
  • French tax rise on added-sugar soft drinks hampers performance
CCE saw a drop in full-year profits

CCE saw a drop in full-year profits

Coca-Cola Enterprises (CCE) has blamed the introduction of a tax rise on soft drinks in France for hampering its 2012 numbers.

The company said today (6 February) that net profits in 2012 came in 9.6% down on 2011, at US$677m. Net sales also slipped, by 2.7% to $8.06bn, with operating profits falling by 10.2% to $928m.

Excluding the impact of the French tax rise - which came into effect in January last year - and on a currency neutral basis, net sales for the year climbed by 1%, CCE said.

Overall volumes dropped by 3% with sparkling beverages down by 3.5%, enough to cancel out a 15% volumes rise in energy drinks and 6.5% increase in Coca-Cola Zero volumes. 

In the final quarter of 2012, net profits decreased by 11.5% to $100m, as sales inched up by 1.2% to $1.92bn. Operating profits fell markedly, however, by 16.7% to $150m and overall volumes took a 5.5% drop.

“We remain confident in our ability to restore, over time, our sales and operating income growth to levels in line with our long-term targets,” said company CEO John Brock, adding that last year CCE faced “significant marketplace challenges and the ongoing macroeconomic softness”.

The results are in contrast to 2011's numbers, when net profits jumped by 20% and net sales rose by 23%.

Company officials said they expect to return to volume growth this year. 

“Going forward, we will continue to focus on value-creating opportunities in order to achieve sustained growth,” Brock said. 

CCE's share price has enjoyed a strong increase recently, climbing by about 17% since November.

For CCE's official announcement, click here.

To read just-drinks' coverage of CCE's Q3 and YTD figures, click here.

Expert analysis

Coca-Cola Enterprises Inc.: Consumer Packaged Goods Company Profile, SWOT & Financial Report

Canadean's "Coca-Cola Enterprises Inc.: Consumer Packaged Goods Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, business description, SWOT analysis, key facts, information on products and services, key Employee biographies, details of locations and subsidiaries, plus information on key news events affecting the company.

Sectors: Company results, Soft drinks, Water

Companies: Coca-Cola Enterprises

There are currently no comments on this article

Be the first to comment on this article

Related research

Coca-Cola Enterprises Ltd in Soft Drinks (United Kingdom)

Coca-Cola Enterprises Ltd is focused on strengthening consumer awareness of its sustainable recycling efforts, as well as its product choice, in the forecast period. The company has invested heavily in marketing to convey its bottle recycling process...

Fruit/Vegetable Juice in the United Kingdom

In 2012, a key shift in consumer interest was towards chilled products. Consumers increasingly looked to the fridge areas in supermarkets/hypermarkets for fruit/vegetable juice. As a result categories such as not from concentrate 100% juice and juice...

Concentrates in the United Kingdom

With increasing pressures on personal finances, UK consumers continued to look for new ways in which to save money. One aspect of this is the increased trend of cooking and socialising at home. Products in the concentrates category have benefited fro...

Related articles

FRANCE: Coca-Cola Entreprise finalises job cuts agreement

The French unit of Coca Cola Enterprises (CCE) has confirmed it is significantly cutting the size of its commercial division, but stressed there will be "no compulsory redundancies" after an agreement with employee representatives was struck.

Analysis - Europe struggles could hamper Coca-Cola Enterprises long-term prospects

The on-going challenges from Europe's trading environment mean that Coca-Cola Enterprises may struggle to achieve its long-term growth targets, an analyst has warned.

US: Coca-Cola Enterprises stems H1 sales slide, but profits hit

Coca-Cola Enterprises (CCE) has pointed to poor weather in some of its markets and the UK's "competitive environment" after reporting a double-digit drop in half-year profits.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page