Coca-Cola Enterprises reports Q3 earnings of US$284M, a nearly 37% year-over-year increase as company receives 5-cents-a-share rise from positive impact of foreign currency translation
October 27, 2011
– Coca-Cola Enterprises Inc.'s third-quarter profit spiked almost 37 percent on stronger revenue and a boost from foreign currency.
The company, which bottles and sells Coca-Cola drinks in Europe, reported Thursday that its net income rose to $284 million, or 88 cents per share, for the quarter that ended Sept. 30. That's up from $208 million in the same quarter last year. Foreign currency translation boosted results by 5 cents per share for the most recent quarter.
Revenue rose more than 27 percent to $2.14 billion, helped by higher prices.
Analysts expected the company to earn 70 cents per share on revenue of $2.15 billion, according to data from FactSet
The company, like many food and beverage makers, has raised prices to offset higher costs. Coca-Cola Enterprises said its net price per case rose 2 percent for the period. The company's total sales volume rose 1 percent.
The bottler said costs will continue to rise in the near-term, putting pressure on its margins for the remainder of the year.
Coca-Cola Enterprises now expects to earn $2.14 to $2.18 per share for the full fiscal year, which includes a 15 cent per share benefit from foreign currency for its full-year results. Analysts forecast earnings of $2.13 per share.
The company expects revenue will grow in a mid-single-digit range.
Both Coca-Cola and PepsiCo Inc. are trying to gain more control over their bottlers and distributors, hoping to get new drinks on shelves more quickly to keep up with changing tastes. Last year, Coca-Cola bought Coca-Cola Enterprises Inc.'s North American bottling operations for $3.4 billion.
Coca-Cola Co. announced Thursday that it plans to buy a major bottler, Great Plains Coca-Cola Bottling Co., for $360 million.
Shares of Coca-Cola Enterprises rose 53 cents, or 2.1 percent, to $26.23 in midday trading Thursday.
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