Coca-Cola Enterprises Inc. Reports Strong 1995 Volume And Price Increases Produced 9 Percent Comparable Cash Operating Profit Growth On Record Revenues Of $6.8 Billion

Business Wire, Jan 23, 1996

ATLANTA--(BUSINESS WIRE)--Jan. 23, 1996--

* Cash operating profit reached $997 million in 1995,

9 percent ahead of comparable 1994 results.

* Net operating revenues reached a record $6.8 billion on

4 1/2 percent constant territory bottle and can growth

and 7 percent net revenues per case growth in 1995.

* Earnings per common share increased 19 percent to

62 cents in 1995, including the first-quarter gain from

the sale of a bottling operation investment and the

fourth-quarter increase in noncash stock compensation

expenses.

Coca-Cola Enterprises today announced that strong 1995 operating momentum generated cash operating profit of $997 million, 11 percent ahead of reported 1994 results. This 1995 cash operating profit performance exceeded comparable 1994 results by 9 percent. Comparable 1994 results include the Wichita Coca-Cola Bottling Company (Wichita bottler) acquisition as if the acquisition occurred on January 1, 1994. Management of Coca-Cola Enterprises believes that cash operating profit, or operating income before deducting noncash depreciation and amortization expenses, represents one of the key internal standards to measure the Company's operating performance. Fourth-quarter 1995 cash operating profit reached $234 million, outpacing reported fourth-quarter 1994 results by 10 percent, and comparable fourth-quarter 1994 results by 9 percent. Favorable foreign currency translation rates increased cash operating profit growth in both full-year and fourth-quarter 1995 by approximately 1/2 percent.

Net income applicable to common share owners increased 19 percent above 1994 results, reaching $80 million, or 62 cents per common share. The reported 1995 results include the first-quarter 1995 gain from the sale of the Company's 50 percent interest in The Coca-Cola Bottling Company of the Mid South. Excluding this gain, 1995 net income applicable to common share owners increased from 1994 levels by 12 percent to $75 million, or 58 cents per common share.

In the fourth quarter of 1995, the Company reported a net loss applicable to common share owners of $3 million, or 3 cents per common share, compared to fourth-quarter 1994 net income applicable to common share owners of $11 million, or 9 cents per common share. The fourth-quarter 1995 loss was solely due to the previously announced increase in certain noncash selling, general and administrative (SG&A) expenses. SG&A expenses increased primarily as a result of the significant 1995 stock price appreciation and the associated increase in noncash stock compensation plan expenses. Strong fourth-quarter 1995 operating results partially offset the effect of the increased SG&A expenses and produced better than expected fourth-quarter and full-year 1995 performance.

"Comparable cash operating profit increased 9 percent in 1995, generating Coca-Cola Enterprises' fourth consecutive year of consistent growth in financial and operating results," stated Summerfield K. Johnston, Jr., vice chairman and chief executive officer of Coca-Cola Enterprises. "We see opportunities for continued growth in 1996, and beyond, as we capitalize on our excellence in marketplace execution and direct capital resources to high-return capital expenditures, foreign and domestic acquisitions, and share repurchase."

Operating Results

"With record 1995 price realization and volume growth that was twice expected industry growth rates, we more than offset the most significant cost of sales increase in the Company's history," commented Henry A. Schimberg, president and chief operating officer of Coca-Cola Enterprises. "Even measured against a highly successful 1994, our 1995 results demonstrate the continuing operating momentum that characterized 1995 and is accelerating as we enter 1996. Our product, package, and marketing plans, a more favorable cost outlook, and our strategic investment in equipment and infrastructure, leave us confident that we can continue to produce a minimum of 8 percent growth in comparable cash operating profit in 1996," continued Mr. Schimberg.

Net operating revenues increased by 13 percent in 1995, reaching a record $6.8 billion, as a result of strong volume and net revenues per case growth. Fourth-quarter 1995 net operating revenues exceeded $1.6 billion, 11 percent ahead of fourth-quarter 1994 results.

Full-year 1995 physical case bottle and can volume exceeded reported and constant territory (acquisition adjusted) 1994 results by 6 percent and 4 1/2 percent, respectively. The Company's full-year 1995 constant territory volume growth, converted to an equivalent case basis, was twice current expected industry growth projections. Fourth-quarter 1995 physical case bottle and can volume outpaced reported and constant territory fourth-quarter 1994 volume by 7 1/2 percent and 6 percent, respectively. The Company's fourth-quarter 1995 constant territory volume maintained the 6 percent growth rate established in the third quarter of 1995, on top of 6 percent constant territory growth in the fourth quarter of 1994.