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Coca-Cola Bottling (COKE) Earnings & Revenues Grow in Q3

Coca-Cola Bottling Co. Consolidated COKE, one of the largest independent bottlers of The Coca-Cola Company’s KO products, reported adjusted earnings of $1.85 per share in the third quarter of fiscal 2017. Earnings increased 25.1% year over year. Notably, shares of the company have lost 0.1% in after-hours trading on Nov 7.

Coca-Cola Bottling reported net sales of $1.16 billion, up 36.9% year over year primarily on acquisitions and higher comparable net sales.

Comparable net sales increased 1.4% driven by a 1% rise in comparable equivalent unit case volumes. Sparkling product comparable volumes were down 0.6%, while that of still products increased 4.3%.

Comparable income from operations decreased 15% to $38.3 million on a year-over-year basis owing to a challenging retail sales environment, storm-related negative impacts and shifts in product mix.

Financials

Cash and cash equivalents were $11.9 million as of Oct 1, 2017, compared with $21.9 million at the end of 2016.

Cash flow from operating activities was $202.4 million in the first nine months of fiscal 2017, reflecting an increase of $74.3 million from the prior-year period.

Plant and equipment acquired during the first nine months of 2017 were worth $115 million, excluding $161.2 million in property, plant and equipment acquired during the first half of 2017.

Peer Releases

Coca-Cola reported better-than-expected results in third-quarter 2017. Lower SG&A expenses (down 20%), higher gross margin (up 170 basis points or bps) and improved operating margin (up 404 bps) helped the company come up with better numbers. However, Coca-Cola's total sales declined 15%, marking the 10th consecutive quarterly decline in revenues.

PepsiCo, Inc. PEP reported mixed third-quarter 2017 (ending Sep 9) results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Nonetheless, this is the sixth consecutive quarter of positive earnings surprise.

Dr Pepper Snapple Group Inc.’s DPS third-quarter 2017 adjusted earnings per share of $1.10 missed the Zacks Consensus Estimate by 4.3%. Earnings were down 6% on a year-over-year basis owing to the recent hurricanes in United States, earthquakes in Mexico and a previously disclosed write-off of prepaid resin inventory. Net sales of $1.74 billion missed the Zacks Consensus Estimate by 1.7% but rose 4% year over year.

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