US: Restructuring hits CCE H1 earnings
Coca-Cola Enterprises (CCE) has today (27 July) reported an 11% fall in first-half profits as restructuring charges hit earnings.
The company, the world's largest Coke bottler, posted operating income of US$715m for the first six months of the year.
However, as volumes in North America and Europe edged up 2.5% during the second quarter, net revenues during the first half rose 5% to US$9.8bn.
John Brock, who was appointed to head CCE in April, said the results were "an excellent starting point" for the company "to create sustained growth in our profitability".
He added: "Our most important responsibility is to generate improving levels of operating performance on a consistent basis."
In North America, a "double-digit" surge in bottled water sales drove a 2.5% increase in second-quarter volumes. CCE also saw volumes from its core carbonated soft drinks portfolio edge up 0.5% thanks to the recent launches of Vault and Black Cherry Vanilla Coca-Cola.
European volumes also rose 2.5% during the second-qaurter thanks to marketing programmes surrounding this summer's football World Cup.
Brock said: "Our business in Europe remains very profitable, and we are optimistic about our long-term growth potential. However, we recognise the challenges created by a combination of changing consumer tastes and a rapidly evolving retail environment.
"Our focus now turns to maximising the significant potential of Coke Zero, which was introduced during June in Great Britain and will launch in Belgium in August."
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