Post Earnings Coverage as Germany, Iberia, and Favorable Weather Boosted Coca-Cola European Partners Earnings Results

Upcoming AWS Coverage on Cott Corp. Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 18, 2016 / Active Wall St. announces its post-earnings coverage on Coca-Cola European Partners PLC (NYSE: CCE). The company posted its financial results for third quarter fiscal 2016 on November 19, 2016. The world’s largest independent Coca-Cola bottler based on revenues, reported y-o-y growth in sales attributed to the addition of Germany and Iberia. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Coca-Cola European Partners’ competitors within the Beverages – Soft Drinks space, Cott Corp. (NYSE: COT), announced on November 01, 2016, its results for the third quarter ended October 1, 2016. AWS will be initiating a research report on Cott Corp. in the coming days.

Today, AWS is promoting its earnings coverage on CCE; touching on COT. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=CCE

http://www.activewallst.com/registration-3/?symbol=COT

Earnings Reviewed

For the quarter ended September 30, 2016, Coca- Cola European Partners’ revenue totaled €3.0 billion, up 82.5% versus the year ago comparable period, reflecting the inclusion of Germany and Iberia during the quarter. The Company’s comparable revenue increased 3.5% on a pro-forma comparable and fx-neutral basis. The company’s revenue per unit case marginally declined 0.5% in the reported quarter on a pro-forma comparable and on a constant currency basis.

Coca- Cola European Partners’ Q3 2016 diluted earnings per share were €0.67 on a reported basis, or €0.66 on a pro-forma comparable basis, including a negative currency translation impact of €0.03, the earnings results improved 18.5% on pro-forma comparable and on a currency neutral basis. The company reported Q3 2016 operating profit of €405 million; pro-forma comparable operating profit was €459 million, which was higher by 7.0% on a pro-forma comparable and excluding the impact of foreign exchange rate.

Segment Results

During Q3 2016, Coca- Cola European Partners’ revenue on a territory basis in Iberia grew 6.5% benefiting from favorable weather and solid execution, as both revenue per unit case and volume grew. The company’s revenue in Germany dropped 1.0%, reflecting the impact of a transition to recyclable PET from returnable PET, promotional plans, and slight negative mix, partially offset by positive volume growth. Great Britain’s revenues fell 13.0%, primarily impacted by a 16% decline of the British pound versus the Euro, partially offset by volume growth and favorable weather. Revenue in the Northern European territories (Belgium, the Netherlands, Norway and Sweden) grew approximately 5.5% driven by promotional plans, favorable weather, and favorable price and mix.

Coca- Cola European Partners’ Q3 2016 volume grew 3.5% from Q3 2015 on a pro-forma basis. These results reflect growth in all categories including regular colas, favorable weather, and the benefits of our brand and marketing initiatives. Sparkling brands grew 3.0%, while Coca-Cola trademark edged up approximately 2.0%, with regular Coca-Cola up 1.0%. Coca-Cola Zero trademark brands grew at a mid-teen percent rate, led by growth in Iberia and Great Britain. The company stated that the introduction of Coca-Cola Zero Sugar in Great Britain was successful and will be introduced in the company’s territories by early 2017.

Sparkling flavors and energy advanced 6.5% with continued strong growth in energy combined with solid growth in Fanta and the benefits of the expansion of Vio. Still brands grew 4.5% with water brands up 4.0% driven by smartwater and Vio.

Cost Matter

During Q3 2016, Coca-Cola European Partners’ cost of sales totaled €1.8 billion, up 80.0% against the prior year, driven by the inclusion of Germany and Iberia in the quarter. On Pro-forma basis, comparable cost of sales totaled €1.8 billion, up 3.0% on a pro-forma comparable and on a currency neutral basis. The company’s cost of sales per unit case declined 0.5% in the reported quarter on a pro-forma comparable and fx-neutral basis. For Q3 2016, operating expenses totaled €756 million, up 90.5% on a y-o-y basis, reflecting the inclusion of Germany and Iberia in the quarter. Pro-forma comparable operating expenses were €701 million, or up 1.5% on a pro-forma comparable and excluding the impact of foreign exchange. During Q3 2016, Coca- Cola European Partners recorded €53 million in restructuring charges principally related to restructuring initiatives in Germany that were in-flight at the time of merger and the transition of Atlanta-based headquarters roles to Europe.

Outlook

For FY16, Coca- Cola European Partners is expecting revenue growth to be flat, with operating profit growth in a modest mid-single digit range and mid-teens diluted earnings per share growth. Pro-forma comparable diluted earnings per share are expected in a range of €1.86 to €1.90, including a negative currency translation impact of approximately 4.5%. The company does not expect to repurchase shares in 2016.

New CEO

On November 10th, 2016, in a separate press release, Coca-Cola European Partners announced the appointment of Damian Gammell as the company’s Chief Executive Officer, effective 28 December, 2016. He is expected to be appointed to the Board of Directors in December. Gammell will succeed John Brock, who has decided to retire after the successful merger to create Coca-Cola European Partners and a distinguished international career in the consumer goods industry. Gammell is currently Chief Operating Officer of Coca-Cola European Partners. Prior to this, he served as Chief Executive Officer of Anadolu EFES, one of the world’s largest beverage companies and Chief Executive Officer of Coca-Cola Icecek, the world’s fourth largest Coca-Cola bottler.

Stock Performance

Coca-Cola European Partners’ stock slipped by 1.84%, closing Thursday’s session at $34.07 on volume of 2.17 million shares, which was higher than the 3 months average volume of 2.03 million shares. The company’s shares are trading at a PE ratio of 14.02 and have a dividend yield of 3.14%.

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