US: Coca-Cola Enterprises swings to full-year profit

Coca-Cola Enterprises (CCE) has reported a swing to full-year profits as volume growth in Europe offset a decline in North America.

The US bottler reported a net income of US$731m for the 12 months to 31 December. This compared to a loss of $4.39bn in the previous year, it said today (10 February).

Consolidated comparable operating income grew 9%, while North American comparable operating income grew 13%, and in Europe 7%.

Full-year sales were down 0.5%, however, as North American sales declined 0.5% and European sales declined 1.5%.

For the full-year, comparable North American volume declined 5%.

A balance of solid volume and pricing growth, however, enabled Europe to achieve a third consecutive year of profits growth. For the full-year, comparable volume grew 5.5%, with continental Europe growth of 5% and growth in the UK of 6%.

“We continue to see the impact of weak macroeconomic conditions on our overall results,” said John Brock, chairman and CEO.

“Key channels, such as on premise, remain soft. We will continue to execute several key operating and brand initiatives to counter these conditions. For example, through our price/package architecture effort, we are offering customers and consumers important package and price point alternatives.”

CCE reaffirmed the guidance delivered in its December conference call with analysts. For 2010, the company expects operating income will increase in a mid-to-high single-digit range, driven by mid single-digit growth in both Europe and North America. Revenue should increase at a low single-digit rate, driven by mid single-digit growth in Europe and essentially flat revenue in North America.

Comparable earnings per diluted common share will increase at a high single-digit rate, excluding currency, CCE said, adding that, although too early to accurately evaluate, currency will have a negligible impact to full-year EPS.

CCE raised its earnings guidance for 2009 in December, but said that it expected the North American market to remain challenging in 2010.

Click here for the company’s results release and check back later for further insight into Coca-Cola Enterprise’s full-year results.