Excluding items that impact comparability, the company achieved net income of $107m.
For full-year 2008, CCE reported a net loss of $4.4bn. This includes total non-cash, pre-tax impairment charges of $7.6bn. Excluding items that impact comparability, the company achieved net income of $647m.
For the full year, total revenues grew 4% reflecting consolidated comparable volume decline of 0.5% and comparable, currency-neutral net pricing per case growth of 4.5%.
Comparable operating income declined 6.5% and consolidated cost of sales per case increased 6.5% reflecting higher North American commodity costs and the mix impact of increased sales of higher cost purchased finished goods.
In the fourth quarter, on a comparable basis, total revenues declined 1% reflecting a consolidated comparable volume decline of 5% and comparable, currency neutral net pricing per case growth of 8%. Comparable operating income declined 11% on a consolidated basis.
“Our fourth quarter results reflect slight improvement in our North American business trends and continued solid operating performance in Europe,” said John F Brock, chairman and CEO.
“However, we continue to face economic pressures in all territories, making our work to enhance margins, grow profit, protect free cash flow, and improve efficiency and effectiveness vitally important.
“We’re moving forward with several significant initiatives in North America as we meet the challenges of the current economic environment.
“These initiatives are focused on improving supply chain operations, implementing a new price/package architecture that will balance channel and package profitability while enhancing brand value, and improving our execution to strengthen our marketplace presence.
“We believe this work, coupled with an improved relationship with The Coca-Cola Company, will ultimately restore long-term, profitable growth for our company,” Brock said.
For full-year 2008, comparable North American volume declined 1.5%, while net pricing per case grew 5.5%.
In the fourth quarter, North American comparable volume declined 7%, while net pricing per case grew 9.5% reflecting the impact of a September price increase, matching a fourth quarter cost of sales per case increase of 9.5%. Full year cost of sales per case increased 8%.
Full-year volume results reflect the continued strength of Coca-Cola Zero, which grew approximately 30%, and the benefits of still beverages such as Glacéau, Fuze and Campbells.
“With the addition of Monster to our energy portfolio, the expansion of our still beverage brands, and Coca-Cola Zero’s positive impact on our sparkling beverage brands, our North American brand portfolio is well positioned to drive improved performance in key categories,” Brock said.
“This creates solid marketplace opportunities that we will capture with our new price/package architecture and targeted execution initiatives.”
In Europe, full-year comparable volume grew 3%, with growth in Great Britain of 4% and 2% growth on the continent. Europe achieved a balance of sparkling and still beverage growth, as sparkling beverages grew 2% and still beverages grew 8.5%.
Coca-Cola trademark brands grew 2.5%, with Coca-Cola Zero up 15% and regular Coca-Cola up 3.5%. Still beverage growth was driven by Capri-Sun, Fanta, and sports drinks. Full-year net pricing per case increased 2%, and cost of sales per case increased 2%.
In the fourth quarter, comparable European volume grew 1.5%, and on a comparable currency neutral basis, net pricing per case grew 2.5% and cost of sales per case increased 3%.
“We’re encouraged by the continued strength of our European business, including Europe’s ability to control costs and enhance profitability,” Brock said.
“Balanced volume and price growth combined with strong execution and continued expense management will be essential as we work to counter the impact of changes in Europe’s economic conditions.”
The company affirmed its prior guidance for 2009. On a comparable and currency neutral basis, consolidated financial results for 2009 will reflect low, single-digit operating income growth.
Including the expected impact of currency translations, the company also expects strong free cash flow of approximately $600m, and capital expenditures of approximately $900m. Free cash flow will continue to be used primarily for debt reduction.
In North America, the company expects full-year 2009 revenue to increase in a mid single-digit range. Volume will decline, reflecting the impact of essential pricing actions to offset an expected high single-digit increase in cost of goods per case.
European revenue will grow in a mid single-digit range. Volume will grow modestly and cost of goods per case is expected to increase in a low, single-digit range, reflecting a continued moderate commodity cost environment.
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