GLOBAL: Select Supplier Results in Brief (Coca-Cola Enterprises, Hershey, ITC)
Bottling giant Coca-Cola Enterprises reported weak second-quarter figures as market conditions in Europe continued to be challenging. Net profit for the period fell 11% to $182m, while sales were down 2.4% to $2.16bn, although underlying earnings were up 5.4%. Overall volumes were down 2.5%, hurt by a 2.5% drop in continental Europe and a 1.5% decline in the UK.
The company revised its full-year outlook, saying it now expects earnings of $2.45 to $2.50 and sales growth in the low single-digit range. It had earlier forecast profit growth of 11% to 12% and sales growth in the low- to mid-single digit range.
Chocolate giant Hershey's saw its second-quarter net profit jump up 18% to $159.5m, helped by increased sales and lower commodity costs. Underlying earnings were up 6%, while revenue grew by 7% to $1.51bn.
Hershey raised its forecasts for the full year, saying it expects revenue growth of 7% (from a forecast of 5% to 7%), and also raised its earnings forecast slightly.
Indian tobacco-to-hotels conglomerate ITC saw its first-quarter profit grow by 18% to Rs18.9bn, marking its slowest rate of growth in four years. The group also saw overall sales rise by 10% to Rs.73.4bn.
The cigarette unit reported a pre-tax profit jump of 18%, with sales up 7% to Rs.35.4bn. Meanwhile, the growing FMCG unit saw its net loss more than halve to Rs.189m (from Rs.388m), with sales up 10.6% to Rs.52.8bn.
NamNews - Friday 26th July 2013