Coca-Cola European Partners Plc (CCE - Free Report) , or CCEP, reported comparable earnings of 74 cents per share (67 cents euro), comfortably beating the Zacks Consensus Estimate of 64 cents by 15.6%. The quarterly figure jumped 17.5% from 63 cents a year ago.
Solid results reflect the successful execution of its sales as well as marketing strategies. Also, favorable weather throughout the quarter contributed to the upside.
Quarterly Revenues & Operating Highlights
CCEP reported net sales of $3.36 billion, surpassing the Zacks Consensus Estimate of $3.29 billion by 2.2%. The reported figure also increased 37.1% year over year in dollar terms.
The company’s operating expenses decreased 31% year over year. This has helped CCEP to report much better operating profit that grew significantly by 99%.
Comparable revenues in the quarter grew 5.5%. Operating expenses, on a comparable basis, improved by 2% and comparable operating profit increased 15.5%.
During the quarter, CCEP’s volume and revenue per unit case increased, reflecting ongoing brand and package innovation, strong execution and benefits from favorable weather during most of the quarter.
From a brand and volume perspective, CCEP’s sparkling portfolio increased 4%, with a 3.5% increase in its Coca-Cola trademark brands. Notably, Coca-Cola Zero Sugar continued to perform well, growing more than 20%.
Under its flavor portfolio, CCEP achieved notable growth for Fanta, with volume growing 8%. This is attributable to the launch of new packaging and marketing initiatives around the Fanta twist bottle.
Energy drinks also performed well and were up 16% as the company continued to execute its multi-brand strategy. Monster brands benefited from the recent launch of the sugar-free Ultra range and the new Lewis Hamilton 44 range.
The company’s still brands increased 6.5%, driven by solid contribution from sports drinks, water and teas. Capri-Sun saw double-digit volume growth. However, this was partially offset by a decline in other fruit juice drinks.
2017 Views Raised
CCEP increased its 2017 comparable and Fx-neutral earnings per share growth to a 10% to 12% range. The company expects currency translation to reduce earnings per share by approximately 2%. Meanwhile, the company remains on track to achieve pre-tax savings of €315 million to €340 million through synergies by mid-2019.
Earlier, the company had expected modest low single-digit revenue growth, along with up to high single-digits growth in operating profit and earnings per share. Meanwhile, excluding synergies, the company had expected core operating profit growth to modestly exceed revenue growth in 2017.
CCEP currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Coca-Cola Company (KO - Free Report) reported better-than-expected results in second-quarter 2017. Adjusted earnings of the company were 59 cents per share, surpassing the Zacks Consensus Estimate of 57 cents by 3.5%.
PepsiCo, Inc. (PEP - Free Report) reported better-than-expected results in second-quarter 2017 (ending Jun 17), with both earnings and revenues beating the Zacks Consensus Estimate. PepsiCo’s second-quarter core earnings per share of $1.50 beat the Zacks Consensus Estimate of $1.40 by 7.1%.
Dr Pepper Snapple Group Inc.’s (DPS - Free Report) adjusted second-quarter 2017 earnings per share of $1.25 missed the Zacks Consensus Estimate of $1.28 by 2.3%.
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