US: Coca-Cola Enterprises gets Q3 boost, but YTD profits drop
- Nine-month net profits falls 7.8% to US$532m
- Net sales in nine months to end of September flat at $6.2bn
- Operating profits decrease 10.4% to $697m
- FY net sales, operating profits expected to be low-single digits
CCE continues to face "macroeconomic" challenges
Coca-Cola Enterprises saw volume growth return in its third quarter, but year-to-date profits are down and on-going market challenges persist.
Net profits in the nine months to the end of September fell by 7.8% to US$532m, off the back of flat sales, the Atlanta-based bottler said today (24 October). Operating profits in the period slid by 10.4% to $697m.
In Q3, the company's net profits came in at $289m, up 9.9% on the prior year. Sales in the three months were up 5% to $2.2bn, while operating profits were up 2.5% to $314m. Third-quarter volumes were up 2.5%.
“Our return to volume growth in the quarter was driven by our operating strategies, customer and consumer support of our brands, and beneficial weather,” said John Brock, CCE's chairman & CEO.
However, he warned about on-going issues in the market. “We continue to face persistent macroeconomic headwinds, a challenging consumer and customer environment, and dynamic competitive conditions that are impacting our near-term outlook.”
Looking ahead, the company said it expects comparable full-year net sales and operating profits to increase by “low single-digits”.
Shares in the group were today trading down 2.84% at $41.26.
To read the company's full statement, click here.
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