Coca-Cola Says European Bottling Merger Will Dent Quarter's Results
June 16 2016 - 7:13AM
Dow Jones News
By Anne Steele
Coca-Cola Co. on Thursday said an earlier completion of a major
European bottling merger will drag results in the current
quarter.
Coke now expects the net impact of acquisitions, divestitures
and other structural items to be a 5 to 6 point headwind on revenue
and a 4 to 5 point headwind on income before taxes in the second
quarter.
Last August, three Coca-Cola Co. bottlers agreed to a merger
combining $12 billion in revenue across 13 European countries, part
of a global consolidation push by the U.S. soda giant to cut costs
amid slowing sales.
Publicly traded bottler Coca-Cola Enterprises Inc., which makes
and distributes Coke in eight European countries including the U.K.
and France, combined with Spain's privately held Coca-Cola Iberian
Partners SA and Germany's Coca-Cola Erfrischungsgetränke AG, the
latter owned by Atlanta-based Coke.
The tie-up, which was completed May 28 -- about one month before
expectations -- formed the world's largest independent Coke bottler
by revenue.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
June 16, 2016 06:58 ET (10:58 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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