US: Coca-Cola Enterprises stems H1 sales slide, but profits hit
- First-half net profits fall 22.6% to US$243m
- H1 net sales in six months to end of June down 1.7% to $4bn
- Operating profits drop 18.9% to $383m
- FY outlook adjusted, operating profits expected to rise “low to mid-single-digit”
CCE has seen a drop in first-half profits and sales
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.
Net profits in the six months to the end of June fell by 22.6% to US$243m, the Atlanta-based group said today (25 July). Sales in the period slid by 1.7% to $4bn, while operating profits dropped by 18.9% to $383m.
Profits have taken more of a hit in this year's half-year for the group, compared to the same period in 2012, but the slide in sales has slowed.
In this year's second-quarter, net profits were down by 11.2% to $182m, while sales fell 2.4% to $2.16bn. Operating profits in the three months dropped by 9.6% to $272m.
Overall Q2 volumes fell by 2.5%, the group said. Coca-Cola brands also lost 2.5% in volume terms, but Coke Zero grew by around 13%.
John Brock, CCE's chairman & CEO, said that the firm's H1 has been affected by “ongoing macroeconomic weakness, poor weather, continuing customer challenges from the impact of the French excise tax increase last year, and the competitive environment in Great Britain”.
But, he added: “Recent weather improvements and a solid summer programme have helped restore growth in our business as we begin the third quarter, although much of the key summer selling season is still ahead of us.”
Looking ahead, the company said it now expects full-year sales and operating profits to rise by low to mid-single digits.
Shares in CCE were today trading up 1.33% at $38 on the NYSE.
To read the company's full statement, click here.
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