News & Events
Tuesday 18 December, 2012
Coca-Cola Enterprises, Inc. Provides Business Update and 2013 Guidance
Full-year 2012 comparable earnings per diluted share are expected
at the high end of our previously disclosed range of
$2.20 to $2.24.
CCE has completed the most recent share repurchase program in 2012,
with full-year purchases totaling 27 million shares or
Board of Directors has authorized a new
$1.5 billionshare repurchase program, with at least $500 millionof planned purchases in 2013.
- 2013 comparable and currency neutral earnings per diluted share are expected to grow approximately 10 percent.
“Our 2012 results will reflect our ability to deliver solid earnings
growth by closely managing each aspect of our business and continuing
world class marketplace execution in difficult operating conditions,”
“These elements of our work are essential to our success, and ultimately will enable us to continue to achieve our most important goal – creating increased value for our shareowners.”
For 2012, CCE expects comparable earnings per diluted share in a range
Based on recent currency rates, the company now expects 2012 free cash
flow of approximately
SHARE REPURCHASE AND DIVIDENDS
The company has completed its most recent share repurchase program by
reaching the cumulative 65 million maximum number of repurchased shares
authorized by the Board of Directors. During 2012, this resulted in 27
million shares or
In addition, the Board of Directors has approved a new
CCE also expects to increase its 2013 dividend payout to a range of 30 percent to 35 percent of 2013 comparable and currency neutral earnings per share. This would be the sixth straight year of dividend increases and represents an expected annualized 2013 dividend increase of at least 15 percent above 2012.
LONG-TERM OUTLOOK AND CAPITAL STRUCTURE
The company affirms its long-term growth targets, with net sales growth of 4 percent to 6 percent, operating income growth of 6 percent to 8 percent, high single-digit earnings per share growth, and an annual increase of at least 20 basis points for return on invested capital. Each target is comparable and currency neutral.
The long-term outlook for capital spending has been revised to a range of 4 percent to 4½ percent of net sales, down from approximately 5 percent, driven primarily by a continued focus on prudent capital management and the impact of the French excise tax increase adding to net sales. The company also affirmed its long-term capital structure operating target in a range of 2.5 times to 3.0 times net debt to EBITDA.
Looking ahead to 2013, CCE expects to end the year with a net debt to EBITDA ratio of no less than 2.5 times, reflecting the impact of potential M&A activity, strategies for returning cash to shareowners, or a combination of both. The company expects to end 2012 with just over 2 times net debt to EBITDA.
“As our actions over the last several years and our outlook demonstrate,
we remain clearly focused on generating value. We are managing our
business, income statement, and balance sheet to continue to generate
strong free cash flow, drive consistent, long-term profitable growth,
and ultimately to create shareowner value,” said
2013 OPERATING OUTLOOK
For 2013, CCE expects earnings per diluted share to grow approximately 10 percent on a comparable and currency neutral basis. Although it is too early to predict the 2013 currency impact, based on recent rates, currency translation would have a slightly positive impact on full-year earnings per share.
Net sales and operating income are expected to grow in a mid-single-digit range. This guidance reflects declining gross margins with expected net pricing per case growth less than an above-average cost of sales per case growth in 2013. While CCE remains committed to preserving or expanding margins over time, in light of sustained macroeconomic weakness and marketplace conditions we will have a more modest approach in 2013. As a result, operating income margins are expected to be down modestly. This outlook is comparable and currency neutral.
The company also expects 2013 free cash flow in a range of
“We look forward to building on the marketplace opportunities we see in
2013 through enhancements of our product and package portfolio, solid
marketing efforts, and excellent programs with our customers,” said
CCE will host a conference call with investors and analysts today at
Included in this news release are forward-looking management comments
and other statements that reflect management’s current outlook for
future periods. As always, these expectations are based on currently
available competitive, financial, and economic data along with our
current operating plans and are subject to risks and uncertainties that
could cause actual results to differ materially from the results
contemplated by the forward-looking statements. The forward-looking
statements in this news release should be read in conjunction with the
risks and uncertainties discussed in our filings with the
Coca-Cola Enterprises, Inc.
Thor Erickson, +1-678-260-3110
Fred Roselli, +1-678-260-3421
European Media Relations
Lauren Sayeski, + 44 (0) 7976 113 674