Coca-Cola Enterprises' sales and earnings rise
Coca-Cola Enterprises, posted increases in third-quarter sales and profits, marking a solid start to the bottler's new identity as a Europe-focused company.
Revenue from Europe rose 4.5 percent as volume grew five percent. The company reported a profit of $208 million, or 61 cents per share. Those numbers do not include North American results.
CCE shares jumped up more than 3 percent in early trading on the New York Stock Exchange.
Comparisons to past periods are difficult because CCE recently swapped territories with Coca-Cola Co. The bottler picked up Norway and Sweden and ceded North America to Coca-Cola, which bought those operations to gain more control over distribution in its core market.
CCE remains based in Atlanta but the bulk of its bottling business is in Europe.
"We have a tremendous opportunity," CCE chief executive John Brock said on a conference call. "CCE is a dramatically different company than we were a few months ago, with an improved growth outlook."
In the European business -- not counting the Norway and Sweden territories, which CCE did not control in the third quarter -- soft drinks and energy drink brands grew 3.5 percent. Meanwhile, "still" beverages such as juices grew more than 14 percent through expanded distribution of Capri Sun and the addition of Ocean Spray.
Fanta, Dr Pepper and Monster energy drinks grew in Great Britain, and Coke Zero's sales jumped more than 20 percent in continental Europe as the brand became more widely available.
"We can't remember the last time Western Europe seemed to outgrow every Mexican bottler," said Credit Suisse analyst Carlos Laboy.
CCE expects to repurchase approximately $1 billion of its shares within the next 18 months. This program is expected to begin before the end of the year but may be adjusted depending on economic and other factors, the company said.
CCE said its long-term goals are to increase revenue by 4 to 6 percent and earnings per share by high single-digit percentages. Laboy said those numbers are "a strong signal of CCE's confidence in its ability to deliver superior results in a developed, old world economy."
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