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Coca-Cola European Partners (CCE) Q2 Earnings & Sales Beat

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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.

Zacks Rank

CCEP currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

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%.

Coca-Cola European Partners PLC Price, Consensus and EPS Surprise

 

Coca-Cola European Partners PLC Price, Consensus and EPS Surprise | Coca-Cola European Partners PLC Quote

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