Hurricanes Challenge Coke Consolidated In Q3

Posted On: 11/14/2017

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CHARLOTTE, NC -- Coca‑Cola Bottling Co. Consolidated, the largest independent Coca-Cola bottler in the U.S., reported operating results for the third quarter ended Oct. 1.

Comparable income from operations decreased 15% to $38.3 million from $45.06 million a year earlier, which Coke Consolidated attributed to a challenging retail sales environment and hurricane-related impacts and shifts in product mix.

Net sales climbed 36.9% to $1.16 billion, primarily attributable to acquisitions and higher comparable net sales. Comparable net sales increased 1.4% to $684.35 million from $674.6 million a year earlier, driven by a rise in unit case volumes. Carbonated drink volumes fell .6%, while still product volume climbed 4.3%.

"We are excited about completing the significant expansion of our company in early October with the final transactions in our planned growth through the acquisition of additional franchise distribution territory and production capacity from The Coca‑Cola Company," said Coke Consolidated chief executive Frank Harrison. "Our expansion, which began in 2014, has seen the company grow significantly, expanding our geographic footprint and customers and consumers we serve. This expansion has also brought 10,000 new teammates to the Coke Consolidated family, helping to extend our company's impact on many new communities."

Coke Consolidated president and chief operating officer Hank Flint added: "The third quarter was one of the more challenging quarters we have experienced in several years with softer than expected sales performance in certain channels of trade. The third quarter was also impacted by hurricanes, which resulted in negative product sourcing impacts and a noticeable shift in product mix during September to lower margin case pack water. Despite these challenges, the company continued to grow with total sales rising by almost 37%, comparable net sales increasing by 1.4% and comparable equivalent unit case volume growing by 1%. We have continued to build our capability and capacity to serve our significantly larger distribution footprint and, with our expansion now completed, we will strengthen our focus on our expanded sales and commercial opportunities and driving operational improvement and efficiency across the entire company."

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