Coca-Cola Enterprises Q1 Profit Down; Backs FY Comparable EPS Growth View

(RTTNews) - Coca-Cola Enterprises, Inc. (CCE) reported that its first-quarter net income was $96 million or $0.40 per share, down from $115 million or $0.44 per share in the same quarter last year.

On a comparable basis, net income per share declined to $0.42 from $0.46 last year. Currency translation had a negative impact of 11 cents on comparable earnings per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly net sales totaled $1.6 billion, down 13 percent from the same quarter a year ago. On a currency-neutral basis, net sales increased 4 percent. Wall Street analysts had a consensus revenue estimate of $1.66 billion.

During the first quarter, comparable volume grew 1 percent. Total volume was driven by mid-single-digit growth in still brands, with flat volume in Coca-Cola trademark products. Volume in Great Britain grew 81/2 percent, reflecting solid growth in Coca-Cola trademark products and the impact of cycling weak results in the same quarter a year ago. Volume declined 31/2 percent on the Continent, compared to growth of 31/2 percent in the first quarter of last year.

For the first quarter, net pricing per case declined 2 percent and cost of sales per case declined 2 percent. Operating expenses increased 3 percent, in part due to the four extra selling days. These figures are comparable and currency neutral.

For 2015, the company continues to expect earnings per share to grow in a 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 just over 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 $2.58 per share on annual revenues of $7.27 billion.

CCE expects to repurchase approximately $600 million of its shares in 2015. During the first quarter, the company repurchased approximately $300 million of its shares.