US: Coca-Cola Bottling Co Consolidated "pleased" with Q1 as profits hit by costs
- Q1 net profits come in 22.8% down at US$4.6m
- Net sales in three months to end of March rise by 4.9% to $377.2m
- Operating profits slip by 2.9% to $18.6m
- Earlier warning of rising costs proves prescient
Coca-Cola Bottling Co Consolidated issued its Q1 numbers yesterday
Coca-Cola Bottling Co Consolidated has reported a marked drop in net profits in its first quarter, as rising costs made their presence felt in the period.
The US Coca-Cola bottler said yesterday (8 May) that, for the three months to the end of March, net profits plunged by 22.8% year-on-year to US$4.6m, despite a 4.9% lift in sales, which totalled $377.2m. Operating profits, meanwhile, were down by 2.9% to $18.6m.
Company chairman & CEO, Frank Harrison, professed himself “pleased" with the firm's "solid revenue growth", highlighting higher volumes and increased pricing in the quarter.
William Elmore, president & COO, added: “The gross margin growth in the first quarter was generally offset by higher costs for labour and benefits as well as higher fuel costs for our delivery fleet. We have continued our focus on improving our supply chain to mitigate the cost increases we have seen in both raw material and operating costs.”
Earlier this month, Coca-Cola Bottling Co Consolidated warned of rising raw material costs going forward, as it posted a tough set of numbers for 2011.
To read the company's official release, click here.
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