Post Earnings Coverage as Coca-Cola European Partners Reported Q1 FY17 Results; Announced Dividend

Upcoming AWS Coverage on Primo Water Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 19, 2017 / Active Wall St. announces its post-earnings coverage on Coca-Cola European Partners PLC (NYSE: CCE). The Company released its interim financial results for the first quarter fiscal 2017 (Q1 FY17) on May 04, 2017. The London, UK-based Company’s profit after taxes increased on a year-over-year basis. Register with us now for your free membership at:

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One of Coca-Cola European Partners’ competitors within the Beverages – Soft Drinks space, Primo Water Corp. (NASDAQ: PRMW), reported its results for Q1 ended March 31, 2017 on Tuesday, May 09, 2017. AWS will be initiating a research report on Primo Water in the coming days.

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

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Earnings Reviewed

In Q1 FY17, CCEP’s reported revenues surged 73.0% due to inclusion of Germany and Iberia business in the Company’s business portfolio in FY17. Meanwhile, the Company’s comparable revenue during Q1 FY17 was €2.38 billion compared to €2.39 billion reported in Q1 FY16.

The independent Coca-Cola bottler reported profit after taxes of €147 million, or €0.30 per diluted share, in Q1 FY17 compared to €59 million, or €0.25 per diluted share, in Q1 FY16. Meanwhile, the Company’s comparable profit after taxes came in at €152 million, or €0.31 per diluted share, in Q1 FY17 versus €132 million, or €0.27 per diluted share, in Q1 FY16

Operating Metrics

During Q1 FY17, CCEP’s comparable cost of sales grew marginally to €1.48 billion from €1.46 billion in Q1 FY16. The Company’s comparable gross profit was €903 million in Q1 FY17 compared to €926 million in previous year’s same quarter. In Q1 FY17, the Company incurred comparable operating expenses of €675 million versus €721 million in Q1 FY16. In the reported quarter, comparable operating profit increased to €228 million from €205 million in Q1 FY16. Furthermore, the comparable profit before taxes during Q1 FY17 came in at €204 million compared to €173 million in the previous year’s corresponding quarter.

In Q1 FY17, the Company’s comparable volume increased to 546 million of unit cases from 543 million of unit cases in Q1 FY16. Additionally, revenue per unit case in Q1 FY17 was €4.44 versus €4.34 in the last year’s comparable quarter.

Cash Flow & Balance Sheet

During the quarter ended March 31, 2017, CCEP’s operating activities provided net cash of €185 million compared to €172 million in the year ago comparable quarter. Meanwhile, free cash flow for the reported quarter stood at €61 million. The Company had cash and cash equivalents balance of €364 million as on March 31, 2017, compared to €386 million at the close of books on December 31, 2016. Furthermore, the Company’s non-current borrowings fell to €5.55 billion as on March 31, 2017, from €5.56 billion as on December 31, 2016.

Dividend

In its earnings press release, CCEP’s Board of Directors declared regular quarterly dividend of €0.21 per share. The dividend is payable June 05, 2017, to those shareholders of record on May 22, 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 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, May 18, 2017, Coca-Cola European Partners’ stock slipped 1.44%, ending the trading session at $39.65. A total volume of 1.15 million shares were traded at the end of the day. In the last month and previous three months, shares of the Company have advanced 4.45% and 12.52%, respectively. Moreover, the stock surged 27.03% since the start of the year. The stock is trading at a PE ratio of 24.98 and has a dividend yield of 2.33%.

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