Coca-Cola Bottling Co Consolidated released its Q1 results yesterday

Coca-Cola Bottling Co Consolidated has seen its net profits struggle in the first quarter, with sales holding steady on improved volumes.

The company said late yesterday (6 May) that net profits in the first three months of 2014 were down by 49%, while net sales inched up by 1.3%. The bottom line was hit by mark-to-market adjustments on commodity hedges, by expenses related to the proposed franchise territory expansion in North America and by "tax expense primarily due to an increase in the valuation allowance".

On a comparable basis, net profits totalled $3.3m, down by 35.3% on the corresponding period a year earlier.

“Our business continues to face a challenging market place as consumer tastes and buying patterns evolve," said company chairman and CEO Frank Harrison. "We are focused on evolving with our customers and consumers to ensure that we provide the right products in the right channels at the right price to meet their needs."

The company also said that it is continuing to work on agreements with The Coca-Cola Co about the franchise expansion, which was initially announced late last year.

To read the company's official statement, click here.