Post Earnings Coverage as Coca-Cola European Partners Reported Annual Results for FY16; Announced Dividend

Upcoming AWS Coverage on Primo Water Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 31, 2017 / Active Wall St. announces its post-earnings coverage on Coca-Cola European Partners PLC (NYSE: CCE) (“CCEP”). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on March 21, 2017. The London, UK-based Company’s quarterly net sales and profit after taxes increased on a year-over-year basis. 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, Primo Water Corp. (NASDAQ: PRMW), reported on March 15, 2017, its financial results for Q4 and full year ended December 31, 2016. AWS will be initiating a research report on Primo Water following the release of its next earnings results.

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

http://www.activewallst.com/register/

Earnings Reviewed

In Q4 FY16, CCEP’s net sales surged 73.0%, due to inclusion of Germany and Iberia business in the Company’s business portfolio in FY16. Meanwhile, pro-forma comparable revenue during Q4 FY16 was €2.58 billion compared to €2.57 billion reported in Q4 FY15.

The independent Coca-Cola bottler reported pro-forma comparable profit after taxes of €212 million, or €0.43 per diluted share, in Q4 FY16 compared to €179 million, or €0.37 per diluted share, in Q4 FY15.

For full year FY16, CCEP’s pro-forma comparable net sales were €10.87 billion compared to €11.04 billion reported in FY15. The Company reported pro-forma comparable profit after taxes of €938 million, or €1.92 per diluted share, in FY16 compared to €831 million, or €1.70 per diluted share, in FY15.

Operating Metrics

During Q4 FY16, CCEP’s pro-forma comparable cost of sales came relatively flat at €1.56 billion. The Company’s pro-forma comparable gross profit was €1.02 billion in Q4 FY16 compared to €1.01billion in previous year’s same quarter. The Company incurred pro-forma comparable operating expenses of €691 million in Q4 FY16 versus €707 million in Q4 FY15. In the reported quarter, pro-forma comparable operating profit increased to €327 million from €305 million in Q4 FY15. Furthermore, the pro-forma comparable profit before taxes during Q4 FY16 came in at €290 million compared to €265 million in the previous year’s same quarter.

In Q4 FY16, the Company’s pro-forma comparable volume increased to 603million of unit cases from 595 million of unit cases in Q4 FY15. Additionally, revenue per unit case in Q4 FY16 was €4.44 versus €4.38 in last year’s comparable quarter.

Cash Flow & Balance Sheet

During the year ended December 31, 2016, CCEP’s operating activities provided net cash of €1.24 billion compared to €922 million in the year ago same period. The Company had cash and cash equivalents balance of €386 million as on December 31, 2016, compared to €156 million at the close of books on December 31, 2015. Furthermore, the Company’s non-current borrowings increased to €5.56 billion as on December 31, 2016, from €3.12 billion as on December 31, 2015.

Dividend

In its earnings press release, CCEP’s Board of Directors declared regular quarterly dividend of €0.21 per share. The dividend is payable April 24, 2017, to those shareholders of record on April 10, 2017.

Outlook

In its guidance for full year FY17, CCEP’s management affirmed the prior guidance of modest low single-digit revenue growth along with up to high single-digits growth in operating profit and diluted earnings per share. Meanwhile, excluding synergies, the Company expects core operating profit growth is expected to modestly exceed revenue growth in FY17.

The Company expects free cash flow in a range of €700 million to €800 million in FY17, which will include the expected benefit from improved working capital offset by the impact of restructuring and integration costs. Capital expenditures during FY17 are projected to be in a range of €575 million to €625 million, including €75 million to €100 million of capital expenditures related to synergies. Furthermore, the Company does not intend to repurchase shares in FY17.

Stock Performance

At the closing bell, on Thursday, March 30, 2017, Coca-Cola European Partners’ stock rose slightly by 0.13%, ending the trading session at $37.70. A total volume of 1.37 million shares were traded at the end of the day. In the last month and previous three months, shares of the Company have advanced 9.31% and 19.23%, respectively. Moreover, the stock surged 20.06% since the start of the year. The Company’s shares are trading at a PE ratio of 24.20 and have a dividend yield of 1.88%.

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