Coca Cola European Partners released the Interim Results for the Six Months Ended 1 July 2016 (link)
First-half diluted earnings per share were €0.74 on a reported basis or €0.83 on a pro forma comparable basis, including a negative currency translation impact of €0.02.
On a territory basis, Iberia revenues were up 1.5 per cent, as revenue per unit case increased ahead of volume. Revenue in Germany declined 0.5 per cent, in part due to the impact of a transition to recyclable PET from returnable PET.
Great Britain revenues were down 10.5 per cent, driven by the negative impact of an approximately 6.0 per cent decline for the British pound versus the Euro …
Revenue in France declined 4.5 per cent, …
I will watch this. I hope the revenue-decline isn’t becoming a trend.
Pro forma comparable cost of sales totaled €3.3 billion, down 3.5 per cent, or down 2.0 per cent on a pro forma comparable and fx-neutral basis.
For 2016, CCEP expects revenue to be flat with operating profit growth in a modest mid-single-digit range and diluted earnings per share in a mid-teen range, all on a comparable and fx-neutral basis.
I like that they lowered their costs.
Board has approved an initial quarterly dividend of €0.17, equivalent to an annualised dividend of €0.68 per share
I expected 0,72 €Dividend for 2016 (link), I hope they will catch up with my expectations till 2019.
For the time being I see nothing alarming here. I realy don’t like the revenue decline and will watch this to ensure that I don’t missed some issues/problems. Also I will track their success with cost cutting though synergies. It’s the first report of them as a combined company, I’m looking forward to their first annual report.
From my 3. June 2016 Post:
This is my final calculation:
In this calculation I assumed that:
- Revenue, EBITDA & Income will stay flat
- Synergies ($350mn) will unfold in 2019
- Tax Rate 28%
- Debt will be at 3,5x EBITDA, 2% interests rate
- Shares outstanding stay flat
I have not adjusted:
- Revenue and EBIT – maybe there is some (single digit) growth
- Tax Rate – maybe tax loopholes in Europe will be closed
- No FX adjustments
- No share buybacks, note: Coca-Cola Enterprises was a big canibal (~25% in 5 years) maybe CCEP will be too
You can finde some EPS numbers from CCEP in this presentation (link)