Coca-Cola Enterprises, Inc. Reports Second-Quarter 2014 Results, Affirms Full-Year Earnings Outlook

Regulatory News:

Coca-Cola Enterprises, Inc. (NYSE: CCE) (Euronext Paris: CCE) today reported second-quarter operating income of $295 million on a reported basis, or $341 million on a comparable basis. In the quarter, reported earnings per diluted share totaled 78 cents, or 90 cents on a comparable basis. Currency translation had a positive impact of approximately 6 cents on comparable earnings per diluted share. Items affecting comparability are detailed on pages 10 through 13 of this release.

For the second quarter, net sales totaled $2.3 billion, an increase of 8 percent from the same quarter in 2013 on a reported basis, or 2½ percent on a currency-neutral basis.

"While we are encouraged by a return to volume growth, we continue to face ongoing macroeconomic weakness, competitive and marketplace pressures, and a dynamic customer landscape, particularly in Great Britain,” said John F. Brock, chairman and chief executive officer. "These challenges demand that we continue to work diligently to build on the strengths of our solid marketing programs, provide outstanding service to our customers, and maximize the effectiveness of our operations.

"Ultimately, we remain focused on our primary objective – delivering growth in shareowner value – and we continue to utilize all business levers to reach this goal.”

OPERATING REVIEW

Total second-quarter volume grew 3½ percent, with growth in sparkling drinks of 3½ percent. Coca-Cola trademark brands grew 4 percent as Coca-Cola Zero achieved growth of more than 14 percent and Coca-Cola grew 4½ percent. CCE’s portfolio of energy brands grew 3 percent. Still beverages increased 2 percent with growth in water, Oasis, Capri Sun, and Nestea. Volume in Great Britain grew 2 percent, and volume in continental Europe (including Norway and Sweden) grew 4 percent.

Net pricing per case in the second quarter was flat, while cost of sales per case declined 1 percent. Operating expenses increased 6 percent, reflecting volume growth and timing of current year and prior year promotional expenses. These figures are comparable and currency-neutral.

"To grow we will continue to execute against the strong combination of marketing, brand, packaging, and operating initiatives we have in place. These initiatives include brand innovations, new take-home and immediate consumption packaging, and efficiency and effectiveness programs,” said Hubert Patricot, executive vice president and president, European Group. "Although we operate in a highly competitive marketplace, with dynamic consumer, customer and economic challenges, we remain focused on delivering sustained profitable growth.”

FULL-YEAR 2014 OUTLOOK

CCE affirms its guidance for full-year 2014. It continues to expect 2014 earnings per diluted share growth of approximately 10 percent, net sales growth in a low single-digit range, and operating income growth in a mid-single-digit range. This guidance is comparable and currency-neutral. Based on recent rates, currency translation would benefit full-year 2014 earnings per diluted share by slightly more than 5 percent.

The company continues to expect 2014 free cash flow of approximately $650 million. Capital expenditures are expected to be approximately $350 million. Weighted-average cost of debt is expected to be approximately 3 percent and the comparable effective tax rate for 2014 is expected to be in a range of 26 percent to 28 percent.

SHARE REPURCHASE

In December 2013, our Board of Directors approved a $1 billion share repurchase program – the fourth program since the creation of new CCE. Through the second quarter of the year, the company has repurchased approximately $600 million of its shares, and continues to expect to repurchase approximately $800 million of its shares by the end of 2014. These plans may be adjusted depending on economic, operating, or other factors, including acquisition opportunities.

CONFERENCE CALL

CCE will host a conference call with investors and analysts today at 10 a.m. EDT. The call can be accessed through the company’s website at www.cokecce.com.

ABOUT CCE

Coca-Cola Enterprises, Inc. (CCE) is the leading Western European marketer, producer, and distributor of non-alcoholic ready-to-drink beverages and one of the world’s largest independent Coca-Cola bottlers. CCE is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. We operate with a local focus and have 17 manufacturing sites across Europe, where we manufacture nearly 90 percent of our products in the markets in which they are consumed. Corporate responsibility and sustainability is core to our business, and we have been recognized by leading organizations in North America and Europe for our progress in water use reduction, carbon footprint reduction, and recycling initiatives. For more information about our company, please visit our website at www.cokecce.com and follow us on twitter at @cokecce.

FORWARD-LOOKING STATEMENTS

Included in this news release are forward-looking management comments and other statements that reflect management’s current outlook for future periods. As always, these expectations are based on currently available competitive, financial, and economic data along with our current operating plans and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. The forward-looking statements in this news release should be read in conjunction with the risks and uncertainties discussed in our filings with the Securities and Exchange Commission ("SEC”), including our most recent Form 10-K and other SEC filings.