CCE released its FY results today

CCE released its FY results today

Coca-Cola Enterprises (CCE) has increased by US$40m the estimated cost of a restructuring programme aimed at turning around its business.

In a call with analysts today (5 February), CCE chief executive & chairman John Brock said the programme “cost more than expected” and now comes with a $240m price tag. He also said CCE is expanding the scheme and expects to gain $110m in “ongoing benefits” compared to an initial forecast of $100m.

The programme was first announced in 2012, when full-year net profits slid by 10% and sales dropped because of weakness in CCE's core European markets. In FY results announced earlier today, profits slipped by 1.5% despite a slight sales increase.

Brock said: “The focus continues to be the same: To be able to reinvest in the business and ultimately be able to deliver our growth targets.”

The programme is due for completion by the end of next year.

Brock also reaffirmed CCE's 2014 outlook, saying that net sales this year are expected to grow in low-single digits and operating profits to increase by mid-single digits.

Meanwhile, Brock said CCE's “Share-a-Coke” marketing campaign is to be expanded “meaningfully” this year after a successful 2013. He also said the company will “maximise the benefits” of its 2014 World Cup partnership and roll out country-specific packaging and activations in markets that have qualified for the Brazil tournament, including England, Belgium, and the Netherlands.

The marketing will focus on trademark Coca-Cola brands, Brock said.