US: "Soft" North America hits CCE in first quarter
Coca-Cola Enterprises has seen "soft economic conditions" in North America hamper its first quarter performance.
The marketer, distributor and producer of Coca-Cola Co. brands said today (24 April) that operating income in the first three months of 2008 slipped by 10.5% to US$163m, despite a 7% increase in net sales to $4.89bn. Net income slumped to $8m from $15m, although stripping out items which affect comparability, including restructuring charges, would see net income hit $38m.
The company blamed softer than expected volume in North American single-serve packages, particularly in sparkling beverages and Dasani for the quarter's performance. At the same time, continued European operating improvement, and the benefits of restructuring programmes and operating expense initiatives, were credited with bringing balance to proceedings.
"While weakness in North America's economic environment tempered our first quarter results, we remain focused on executing against our three strategic objectives, ensuring the continued success of our restructuring programs, and controlling our operating expenses," said company chairman and CEO, John Brock.
"We believe positive topline trends in Europe, coupled with the improvement generated by North American operating and brand initiatives, will enable us to achieve solid earnings growth," Brock continued. "As we work to achieve this target, it is important that we respond to the marketplace challenges created by the current North American economic environment. We are working quickly and aggressively with The Coca-Cola Company on specific strategies that will strengthen our ability to deliver against our objectives."
For the full year, CCE said it expects earnings per share to come in between $1.50 and $1.55.
I know what is top of mind for all of you — the current macroeconomic environment and its impact on our results,” said Muhtar Kent, CEO of The Coca-Cola Company, yesterday (17 July) as he reported the...
Coca-Cola's distribution deal with Hansen Natural may best be summed up with the old catchphrase, 'if you can't beat them, join them'....
Hansen Natural reached a distribution deal this week with Coca-Cola Co, together with Coca-Cola Enterprises, to distribute its Monster energy drink in six Western European countries as well as Canada ...
A dividend of US$0.38 per share will be paid by The Coca-Cola Co, following the soft drinks giant's third quarter earnings rise....
Coca-Cola Amatil has said it is on-track to meet operating profit growth of 7% for its full-year, following a solid third quarter....
The top ten stories published on just-drinks this week:...
The Coca-Cola Co. has secured a "multi-year" beverage contract with US restaurant chain Firehouse Subs....
Hansen Natural has warned that it will take a hefty charge following this week's announcement that it has secured a distribution deal with The Coca-Cola Co. and Coca-Cola Enterprises....
- Craft spirits shake-out will be just the beginning
- How Treasury is rewriting the rule book - Comment
- The decline of the flagship beer brand - Comment
- Job cuts not the whole story at AB InBev - Comment
- Coca-Cola India suspends bottling operations
- Diageo brands need "fixing and nurturing" - TWE
- Diageo revamps Gordon's gin bottle in UK
- Craft Brew Alliance poised for AB InBev takeover?
- SAB shareholders granted AB InBev vote split
- Pernod deal rescues Corby's FY
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages