Coca-Cola Bottling Co. Consolidated , one of the largest independent bottlers of The Coca-Cola Company’s (KO - Free Report) products, reported adjusted earnings of $2.45 per share in the third quarter of 2016, up 19.5% year over year.
Coca-Cola Bottling reported net sales of $849 million, up 37.2% year over year primarily on acquisitions and higher comparable net sales.
Comparable net sales increased 4.1% driven by a 2.7% rise in comparable equivalent unit case volume. Both sparkling and still products contributed to the volume increase. Comparable income from operations increased 30.8% to $46.8 million on a year-over-year basis, driven by sales growth and the leveraging of selling, delivery and administrative expenses.
The company expects to continue to grow both organically and through the acquisition of additional manufacturing and distribution territory. On Sep 2016, Coca-Cola Bottling entered into a definitive agreement with an affiliate of The Coca-Cola Company to include distribution territories in Ohio, Indiana, Illinois, Kentucky and West Virginia as well as to purchase manufacturing facilities in Ohio and Indiana. Earlier, Coca-Cola Bottling benefitted from the expansion of Monster Beverage Corporation’s (MNST - Free Report) product distribution throughout the company’s territory in Aug 2014.
Also, during second-quarter 2016, the company expanded its territories to include Maryland and Delaware and took over two manufacturing facilities in Maryland, under its agreement with The Coca-Cola Company. Notably, most of The Coca-Cola Company’s beverages are manufactured, sold and distributed by independent bottling partners like Coca-Cola Bottling Co, Coca-Cola European Partners Plc. (CCE - Free Report) and Coca-Cola FEMSA S.A.B de C.V.
COCA COLA BOTTL Price, Consensus and EPS Surprise
Cash flow from operations was $128.1 million in the first nine months of 2016 compared with $72.5 million for the prior-year period. The increase came on the back of growth in comparable income from operations and cash generated from acquired territories.
In the first nine months of 2016, cash payments for acquired territories amounted to $174.6 million. Meanwhile, capital expenditures increased 19.3% to $124.6 million in the first nine months of 2016 on a year-over-year basis driven by capital expenditures for the acquired territories.
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