Coca-Cola Bottling has announced a profit of $10.8 million (€10.8m) for the second quarter of 2002.
This compares to net income of $5.0 million for the second quarter of 2001. For the first six months of 2002, net income was $14.2 million compared to $3.2 million for the first six months of 2001.
On January 2, 2002, the Company purchased an additional interest in Piedmont Coca-Cola Bottling Partnership, a partnership with The Coca-Cola Company, increasing its ownership from 50 per cent to approximately 55 per cent. As a result of the increase in ownership, the financial results of Piedmont are consolidated with those of the Company beginning with the first quarter of 2002. All comparisons of operating results in this release include the results of Piedmont as if it had been consolidated in all prior periods.
Comparable net sales were up 8.5 per cent in the second quarter and 6.8 per cent for the first six months of 2002. This growth was driven primarily by higher bottle/can volume which was up 5.4 per cent in the second quarter and 4.2 per cent in the first half. The difference between the growth rate in net sales and the volume growth rate reflects increased contract sales to other Coke bottlers, higher average revenue per case and shifting package and channel mix. Operating cash flow improved more than 8 per cent in both the second quarter and the first half of 2002.
Frank Harrison, Chairman and CEO, said that he was pleased with the Company's results through June: "The gains in operating performance reflect our continued focus on growing carbonated soft drink brands through innovation, as well as the continued success of Dasani water and the successful introduction of Minute Maid."