Coca-Cola European Partners Expects FY17 Modest Low Single-digit Revenue Growth

(RTTNews) - Coca-Cola European Partners plc (CCEP) said that it expects modest low single-digit revenue growth, with operating profit and earnings per share growth to be up high single-digits for 2017. Excluding synergies, the company expects core operating profit growth to modestly exceed revenue growth. Each of these growth figures are on a comparable and fx-neutral basis when compared to the 2016 pro forma comparable outlook. At recent rates, currency translation would reduce 2017 full-year diluted earnings per share by approximately 1 per cent.

For 2016, the company now expects approximately 1 per cent revenue growth, with operating profit growth in a modest mid-single-digit range, and mid-teens earnings per share growth. All of these items are on a pro forma comparable and fx-neutral basis. Pro forma comparable earnings per share is expected to be at the high end of or just above the previously stated range of 1.86 euros to 1.90 euros, including a negative currency translation impact of approximately 4.5 per cent.

In addition to operating profit growth, full-year 2016 earnings per share growth is benefiting from differences in interest and tax rates between pro forma comparable 2015 figures and our 2016 outlook.

"Throughout the year, we have maintained a diligent focus on delivering our operating objectives for 2016, even as we worked to successfully complete our merger earlier this year," said John F. Brock, chief executive officer. Mr. Brock will retire and be succeeded by Damian Gammell, currently chief operating officer, effective 28 December 2016.

The Company expects 2017 free cash flow in a range of 700 million euros to 800 million euros, including the expected benefit from improved working capital offset by the impact of restructuring, integration, and deal costs. Capital expenditures are expected to be in a range of 575 million euros to 625 million euros, including 75 million euros to 100 million euros of capital expenditures related to synergies.

The company said it remains on track to achieve pre-tax run-rate savings of 315 million euros to 340 million euros through synergies by mid-2019. Further, CCEP expects to exit 2017 with run-rate savings of approximately one-half of the target. Restructuring cash costs to achieve these synergies are now expected to be approximately 2 1/4 times expected savings and includes cash costs associated with pre-transaction close accruals.

The CCEP Board of Directors declared a regular quarterly dividend of 0.17 euros per share. The dividend is payable 13 January 2017 to those shareholders of record on 30 December 2016.