US: Coca-Cola Bottling Co Consolidated slows profits slide in Q2

By | 8 August 2012

  • H1 net profits fall by 10% to US$15.3m
  • Sales in six months to end of June rise by 3.3% to $807.9m
  • Operating profits come in flat, down 0.9% at $47.2m
  • Lower raw material costs forecast to rise in H2
Coca-Cola Bottling Co Consolidated released its H1 results late yesterday

Coca-Cola Bottling Co Consolidated released its H1 results late yesterday

Coca-Cola Bottling Co has reported a double-digit drop in first-half net profits, but a rise in volumes and a lower-than-expected increase in raw material costs helped boost revenue growth.

Net profits in the six months to the end of June fell by 10% to US$15.3m on the previous year, the US Coca-Cola bottler said yesterday (8 August). Sales were up slightly, by 3.3% to $807.9m in the period. 

Operating profits were flat, falling by 0.9% to $47.2m.

In Q2, net profits fell by 3.2% to $10.7m, while sales were up by 1.8% to $430.7m.

Frank Harrison, the group's chairman & CEO, said revenue and gross margin growth in H1 and Q2  was driven by "slightly higher volume, increased pricing, and lower than expected cost increases in certain raw materials".

He added: "We continue to seek innovation to deliver value to our customers through more targeted packaging, promotions and product enhancements."

In May, the group reported a marked drop in Q1 net profits, down by 22.8% to $4.6m.

Looking ahead, William Elmore, the group's president & COO, sounded a warning about raw material costs. "While raw material costs have been lower than expected during the first half of 2012, we anticipate that certain raw material costs, primarily sweetener derived from corn, will be higher in the second half of the year,” he said. 

For the company's official statement, click here.

For the firm's Q1 performance, click here.

Expert analysis

Coca Cola Bottling Co. Consolidated - SWOT Analysis

Coca Cola Bottling Co. Consolidated - SWOT Analysis company profile is the essential source for top-level company data and information. Coca Cola Bottling Co. Consolidated - SWOT Analysis examines the company’s key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy.Coca-Cola Bottling Co. Consolidated (Coca Cola Bottling or “the company”) is a producer, seller, and distributor of soft drinks in the US. It is headquartered in Charlotte, North Carolina and employs approximately 5,100 people. The company recorded revenues of $1,561.2 million in the financial year ended December 2011 (FY2011)*, an increase of 3.1% over FY2010. The operating profit of Coca Cola Bottling was $87.5 million in FY2011, a decrease of 9.1% compared to FY2010. The net profit was $28.6 million in FY2011, a decrease of 20.7% compared to FY2010. *The company's financial year ends on the Saturday closest to December 31. The financial years ended January 1, 2012 and January 2, 2011 were 52-week periods.

Sectors: Company results, Soft drinks, Water

Companies: Coca-Cola Bottling

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