Net profits jumped to $61m for the three-month period, up from $8m in the same period of 2008. Net sales rose by 3% to $5bn for the three months, with higher prices helping to offset a sales volume decline of 0.5%.
Operating profits rose by 47% on a comparable basis to $92m, and as a result the company has raised its operating profits guidance for the full year from a low single-digit rise to a mid single-digit rise. Diluted earnings per share are expected to be in a range of $1.24 to $1.29, including a 20% negative currency impact.
Total revenues for the quarter grew 3% after a negative currency impact of 8%. Consolidated comparable volume declined 0.5% and consolidated comparable operating income increased 47% (or $92m). Operating income grew $89m in North America and $3m in Europe after a $40m negative foreign currency impact. Comparable EPS results include a negative currency impact of approximately four cents.
CCE chairman and CEO, John Brock, praised the group’s efforts to grow revenues and cut costs in the first quarter, but remained cautious for the full year.
“Our first-quarter results demonstrate the importance of our work to maximise the value of our brands through diligent revenue management, to improve customer service and to closely manage costs. We remain cautious about the rest of the year, however, as the first quarter is our smallest reporting period, and general economic conditions remain challenging in North America and Europe.
“To achieve continued success in the face of this difficult operating environment, we must continue to capture the value of our brands for our customers, consumers and share owners with strong marketplace execution, and the full benefits of our efficiency and operating programmes. We have revised full-year guidance to reflect our strong first-quarter results, confidence in our business initiatives, and the current economic environment.”
In the first quarter, North American operating income improved, with comparable bottle and can volume down 3%, net pricing per case up 10%, and cost of sales per case up 10%. Volume results include solid growth for Coca-Cola Zero and the addition of Powerade Zero and Monster Energy drinks. Growth in net pricing per case and cost of sales per case include the increased sales of purchased finished goods. Both are comparable and exclude the effects of currency translation.
Europe achieved volume growth of 5.5%, successfully lapping strong volume growth of 7% from the same quarter a year ago, and reflecting solid growth in sparkling and still beverages. On a comparable and currency neutral basis, net pricing per case grew 2.5% and cost of sales per case increased 1%.
Source: Coca-Cola Enterprises
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