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(Alliance News) - Coca-Cola European Partners PLC on Thursday said third-quarter trading was line with expectations, but annual earnings growth will be at the lower end of guidance range due to "softening market conditions".
Coca-Cola European Partners shares were untraded in London early Thursday at 52.45 pence each.
"Whilst we continue to gain market share across all geographies, we have had a slower than expected start to the fourth quarter as we are seeing early signs of softening market conditions, particularly in France and Great Britain, and unfavourable weather in October across most markets," Chief Executive Damian Gammell said.
"However, we still expect to deliver revenue growth and free cash flow at the top-end of guidance as well as solid full-year earnings growth, albeit at the low-end of our previously guided range. This, alongside delivering a healthy 17% increase in the annual dividend and the now near completion of our EUR1.5 billion share buyback programme, collectively demonstrate our focus of driving sustainable value for our shareholders," Gammell added.
The Uxbridge, London-based bottling company of Coca-Cola soft drinks now predicts currency-neutral operating profit growth of 6%, versus 6% to 7% growth guided previously. Diluted earnings per share growth, on constant currency basis, is expected to be 10% versus previously 10% to 11% growth.
Annual revenue growth is estimated at 3%, previously given as a low single-digit range, excluding the impact of incremental soft drinks taxes of 1%.
In 2018, reported operating profit totalled EUR1.3 billion on revenue of EUR11.5 billion. Diluted EPS was EUR1.86.
Coca-Cola European Partners recorded revenue of EUR3.28 billion for the third quarter of 2019, flat year-on-year, with revenue per unit case rising 2.0% to EUR4.77. Year-to-date revenue increased 4.0% to EUR9.08 billion and revenue per unit case rose 1.0% to EUR4.78.
Third-quarter volumes fell 1.5% due to strong comparatives, while year-to-date they were up 1.0%.
Coca-Cola European Partners also said that it will pay a second half interim dividend of EUR0.62 per share, up 15% versus last year, maintaining its annualised dividend payout ratio of 50%.
By Tapan Panchal; tapanpanchal@alliancenews.com
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