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Coca-Cola European Partners Reports Interim Results for the Six Months Ended 30 June 2017

LONDON--(BUSINESS WIRE)--Coca-Cola European Partners plc (CCEP) (ticker symbol: CCE) today announces its interim results for the six months ended 30 June 2017 and increases full-year 2017 outlook.

“These results reflect the successful execution of our sales and marketing plans, as well as favourable weather throughout the quarter. ”

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Highlights

  • First-half diluted earnings per share were €0.91 on a reported basis or €0.98 on a comparable basis, including a negative currency translation impact of €0.03.
  • First-half reported revenue totalled €5.4 billion, up 3.0 percent on a comparable basis, or up 5.0 percent on a comparable and fx-neutral basis. Volume grew 3.0 percent on a comparable basis.
  • First-half reported operating profit was €635 million; comparable operating profit was €688 million, up 14.0 percent on a comparable basis, or up 17.0 percent on a comparable and fx-neutral basis.
  • Second-quarter diluted earnings per share were €0.61 on a reported basis or €0.67 on a comparable basis, including a negative currency translation impact of €0.02.
  • CCEP increases full-year guidance for 2017 including comparable and fx-neutral diluted earnings per share growth in a 10 percent to 12 percent range when compared to 2016 comparable results; at recent rates, currency translation would reduce diluted earnings per share by approximately 2 percent.
  • CCEP remains on track to achieve pre-tax savings of €315 million to €340 million through synergies by mid-2019.

“We delivered a strong second quarter as we continue to make solid progress in building our new company and realising our planned synergies,” said Damian Gammell, Chief Executive Officer. “These results reflect the successful execution of our sales and marketing plans, as well as favourable weather throughout the quarter.

“Importantly, our results also continue to support the strategic rationale for creating CCEP,” Mr. Gammell said. “Looking forward, we remain focused on our long-term business growth through expanding our portfolio, creating value with our customers, and improving in-market execution, all to generate strong cash flow and drive long-term value for our shareholders.”

Key Financial Measures

Unaudited, fx impact calculated by recasting current year results at prior year rates

Second Quarter Ended 30 June 2017
€ million % change

As

Reported

Comparable

Fx-Impact

As

Reported

Comparable Fx-Impact

Comparable

Fx-Neutral

Revenue 3,054 3,054 (52 ) 40.5 % 5.5 % (2.0 )% 7.5 %
Cost of sales 1,853 1,845 (31 ) 36.0 % 5.0 % (2.0 )% 7.0 %
Operating expenses 785 749 (10 ) 31.0 % 2.0 % (1.5 )% 3.5 %
Operating profit 416 460 (11 ) 99.0 % 15.5 % (3.0 )% 18.5 %
Profit after taxes 298 326 (8 ) 97.5 % 19.5 % (3.0 )% 22.5 %
Diluted earnings per share (€) 0.61 0.67 (0.02 ) 35.5 % 19.5 % (3.0 )% 22.5 %
Key Financial Measures

Unaudited, fx impact calculated by recasting current year results at prior year rates

Six Months Ended 30 June 2017
€ million % change

As

Reported

Comparable Fx-Impact

As

Reported

Comparable Fx-Impact

Comparable

Fx-Neutral

Revenue 5,436 5,436 (94 ) 53.5 % 3.0 % (2.0 )% 5.0 %
Cost of sales 3,321 3,324 (56 ) 49.0 % 3.5 % (1.5 )% 5.0 %
Operating expenses 1,480 1,424 (19 ) 47.5 % (2.0 )% (1.0 )% (1.0 )%
Operating profit 635 688 (19 ) 102.0 % 14.0 % (3.0 )% 17.0 %
Profit after taxes 445 478 (14 ) 112.0 % 18.0 % (3.5 )% 21.5 %
Diluted earnings per share (€) 0.91 0.98 (0.03 ) 23.0 % 18.0 % (3.5 )% 21.5 %

Operational Review

First-half 2017 diluted earnings per share were €0.91 on a reported basis, or €0.98 on a comparable basis. Currency translation had a negative impact of €0.03 on first-half 2017 comparable diluted earnings per share. First-half 2017 reported operating profit totalled €635 million, up 102.0 percent driven by the inclusion of Germany, Iberia, and Iceland. Comparable operating profit was €688 million, up 14.0 percent on a comparable basis, or up 17.0 percent on a comparable and fx-neutral basis.

Second-quarter 2017 diluted earnings per share were €0.61 on a reported basis, or €0.67 on a comparable basis. Currency translation had a negative impact of €0.02 on second-quarter comparable diluted earnings per share. Second-quarter reported operating profit totalled €416 million, up 99.0 percent versus prior year driven by the inclusion of Germany, Iberia, and Iceland. Comparable operating profit was €460 million, up 15.5 percent on a comparable basis, or up 18.5 percent on a comparable and fx-neutral basis.

Key operating factors in the second quarter include the benefits from our sales and marketing initiatives, country mix, favourable weather, as well as favourable prior year comparables. Additional factors include a modest gross margin increase as revenue per unit case offset increases in costs of sales per unit case, ongoing operating expense management, and post-merger synergy benefits.

Revenue

First-half 2017 reported revenue totalled €5.4 billion, up 53.5 percent, driven by the inclusion of Germany, Iberia, and Iceland...


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