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Coca-Cola European Partners (CCE) Beats Earnings in Q3

CCE KO PEP MNST

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Coca-Cola European Partners plc or CCEP (CCE - Free Report) reported better-than-expected results in the third quarter of 2016.

Earnings of 74 cents (or €0.66) per share beat the Zacks Consensus Estimate of 72 cents by 2.8%. Earnings also improved 18.5% year over year on a pro forma comparable basis, excluding the impact of foreign exchange rate. Currency had a negative impact of 4.5% on adjusted earnings.
 

Revenues & Volumes

During the quarter, net sales improved 3.5% year over year to $3,331.9 million (or €2,986 million), on a pro forma comparable basis excluding the impact of foreign exchange rate. The reported figure also surpassed the Zacks Consensus Estimate of $3,266 million by 2%.

The company’s volume increased 3.5% in the quarter buoyed by the benefits of its brand, package, marketing initiatives and improved weather conditions.

The company’s Sparkling drinks (accounting for 84% of total) grew 3% in the third quarter, within which Coca-Cola Trademark improved 2% while Sparkling Flavors and Energy increased 6.5%. Notably, Coca-Cola trademark brands improved on 1% growth in regular Coca-Cola and robust mid-teen growth in Coca-Cola Zero. CCEP’s Coca-Cola Zero brand has been re-launched as Coca-Cola Zero Sugar in Great Britain, France, Belgium in the Netherlands and the venture has been very successful.

The company registered 4.5% growth in Stills, with Juice, Isotonics and Other growing 5% and Water improving 4%.

Operating Highlights

The company’s cost of sales increased 3% year over year in the quarter, on a pro forma comparable and fx-neutral basis. Meanwhile, cost of sales per unit case was down 0.5%.

Although operating expenses increased 1.5% year over year in the quarter, on a pro forma comparable and fx-neutral basis, operating profit improved 7% given the positive impact of volume growth and timing of expenses.

2016 Guidance Reaffirmed

On a comparable and currency-neutral basis, CCEP expects revenues to remain flat. Operating profit is expected to grow in a modest mid-single-digit range and earnings in a mid-teen range.

Coca-Cola European Partners plc or CCEP was formed on May 28, 2016 through the combination of Coca-Cola Enterprises or CCE, Coca-Cola Iberian Partners or CCIP and CCEG or Coca-Cola Erfrischungsgetränke AG.

Based on revenues, CCEP is the world’s largest independent Coca-Cola bottler. It serves over 300 million consumers across Western Europe, including Andorra, Belgium, continental France, Germany, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, Portugal, Spain and Sweden.

The company carries a Zacks Rank #5 (Strong Sell).

Peer Releases

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.

Monster Beverage Corporation’s (MNST - Free Report) third-quarter adjusted earnings of 99 cents per share missed the Zacks Consensus Estimate of $1.12 by 11.6%.

PepsiCo, Inc.’s (PEP - Free Report) third-quarter core earnings per share of $1.40 beat the Zacks Consensus Estimate of $1.32 by 6.1%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

COCA-COLA EU PT Price, Consensus and EPS Surprise

 

COCA-COLA EU PT Price, Consensus and EPS Surprise | COCA-COLA EU PT Quote

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