Coca-Cola Enterprises Q2 Profit Down, But Results Beat View; Affirms Outlook

(RTTNews) - Coca-Cola Enterprises, Inc. (CCE) reported that its second-quarter net income was $176 million or $0.75 per share, down from $198 million or $0.78 per share in the same quarter last year.

On a comparable basis, net income per share was $0.79, compared to $0.90 per share last year. Currency translation had a negative impact of 18 cents on comparable earnings per share.

On average, sixteen analysts polled by Thomson Reuters expected the company to report earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly net sales totaled $1.93 billion, down 17 percent from $2.33 billion in the same quarter a year ago. On a currency-neutral basis, net sales decreased 2 percent. Wall Street analysts had a consensus revenue estimate of $1.90 billion.

During the second quarter, volume declined 1 percent, impacted by the challenging retail environment and strong prior year growth of 31/2 percent.

Sparkling brands declined 2.5 percent and Coca-Cola trademark declined 3 percent, while Energy brands grew more than 15 percent, driven primarily by Monster. Still brands grew 7 percent. Volume in both Great Britain and continental Europe declined 1 percent.

Net pricing per case declined 1 percent and cost of sales per case declined 3 percent, creating gross margin improvement. Operating expenses increased 1 percent. These figures are comparable and currency neutral.

For 2015, the company continues to expect earnings per share to grow at the upper end of the range of 6 percent to 8 percent on a comparable and currency-neutral basis. Based on recent rates, currency translation would negatively impact full-year 2015 earnings per share by about 18 percent.

Net sales and operating income are each expected to achieve slightly positive growth on a comparable and currency-neutral basis.

Wall Street currently is looking for fiscal year 2015 earnings of $2.55 per share on annual revenues of $7.11 billion.

CCE expects to repurchase about $600 million of its shares in 2015. Through the end of the second quarter, the company repurchased approximately $500 million of its shares.