Coca-Cola Enterprises Inc. reports 1994 comparable cash operating profit grew 9 percent, earnings per common share reached 52 cents, and revenues exceeded $6 billion

Business Wire, Jan 31, 1995

ATLANTA--(BUSINESS WIRE)--Jan. 31, 1995--Coca-Cola Enterprises announced today that 1994 cash operating profit (operating income before deducting depreciation and amortization) reached $901 million, approximately 9 percent above comparable 1993 results of $829 million. Strong 1994 cash operating profit growth resulted from both carbonated soft drink and noncarbonated beverage growth, partially reflecting the positive impact of new products and packages, balanced with a favorable net revenues and cost per case relationship. Full-year 1994 cash operating profit results reflected the third consecutive year of comparable cash operating profit growth of 8 percent or better.

Comparable 1993 results reflect 1993 acquisitions as if they occurred on January 1, 1993. Full-year 1994 cash operating profit exceeded reported 1993 results of $804 million by approximately 12 percent. Fourth-quarter 1994 cash operating profit advanced to $213 million, approximately 12 percent above fourth-quarter 1993 results of $190 million.

Strong operating performance, complemented by both reduced net interest expense and a lower effective tax rate, produced full-year 1994 net income applicable to common share owners that reached $67 million, or 52 cents per common share. Net income in 1994 more than doubled from 1993 net income of $25 million, or 20 cents per share, excluding the $40 million, or 31 cents per share, one-time 1993 deferred tax charge. Reported 1993 results reflected a net loss of $15 million, or 11 cents per share. Fourth-quarter 1994 net income applicable to common share owners reached $11 million, or 9 cents per common share, nearly triple fourth-quarter 1993 net income of $4 million, or 3 cents per share.

Summerfield K. Johnston, Jr., vice chairman and chief executive officer of Coca-Cola Enterprises, stated, "We are pleased that we enter 1995's challenging environment with strong 1994 results. We believe our 1994 results once again demonstrate that Coca-Cola Enterprises is positioned to operate effectively in a competitive environment and to achieve our future performance objectives, as we have done for the last three years." Mr. Johnston continued, "We are managing Coca-Cola Enterprises to maximize share-owner value and our strategies are focused on achieving long-term profitability."

Operating Results

Record full-year 1994 net operating revenues of more than $6 billion outpaced reported 1993 results by approximately 10 percent and exceeded comparable 1993 performance by approximately 6 percent. Fourth-quarter 1994 net operating revenues reached $1.5 billion, reflecting an increase of approximately 12 percent above fourth-quarter 1993 results. Both fourth-quarter and full-year 1994 net operating revenues growth reflect favorable bottle and can physical case and fountain gallon growth, balanced with net revenues per case increases.

Henry A. Schimberg, president and chief operating officer of Coca-Cola Enterprises, stated, "Over the past three years, under very different business, economic, and industry conditions, we have managed the operating variables of this Company to equal or surpass our targeted performance. We have achieved this level of consistency by focusing on local marketplace execution as a competitive point of distinction, and we believe that by continuing to capitalize on this focused strategy we will produce our targeted results once again in 1995." Mr. Schimberg continued, "In 1995, we anticipate offsetting packaging cost increases with net revenues per case growth resulting from varying levels of local market price increases, control of discounts and allowances, and the effective management of our product, package, and distribution channel mix."

Full-year 1994 bottle and can physical case volume increased above reported prior-year levels by approximately 8 1/2 percent, while fountain gallon volume grew by approximately 6 percent. After adjusting 1993 results for constant territories, 1994 bottle and can physical case and fountain gallon volume exceeded 1993 levels by over 4 1/2 percent and 3 1/2 percent, respectively. Bottle and can volume growth reflected the strength of our core carbonated brands such as Coca-Cola classic, diet Coke, and Sprite, and the positive impact of new packaging such as the plastic 20-ounce contour bottle. Noncarbonated beverages including PowerAde and Fruitopia also contributed significantly to our 1994 volume growth.

Fourth-quarter 1994 bottle and can physical case and fountain gallon volume exceeded reported fourth-quarter 1993 levels by approximately 6 1/2 percent and 7 percent, respectively. Fourth-quarter 1994 bottle and can physical case and fountain gallon results both increased above fourth-quarter 1993 constant territory volume by approximately 6 percent.

Domestic fourth-quarter and full-year 1994 net revenues per case both exceeded prior-year levels by approximately 1/2 percent. Trends within fourth-quarter 1994 reflected steadily increasing net revenues per case growth, with December 1994 domestic net selling prices ahead of December 1993 levels by approximately 2 1/2 percent. These selling price increases were implemented as part of a strategy to position the Company for the significant packaging cost increases which were effective January 1, 1995.