Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE) , one of the largest independent bottlers of the products of The Coca-Cola Company (NYSE:KO) , reported adjusted earnings of $2.03 per share in the second quarter of 2016, up 6.3% year over year.
Coca-Cola Bottling reported net sales of $840.4 million, up 36.7% year over year.
Organic growth in the legacy territories as well as territory expansion through the acquisition of several new distribution territories from Coca-Cola led to the solid performance.
Comparable net sales increased 4.5% driven by a 4.5% increase in volume, particularly in sparkling and still portfolios. Coca-Cola Bottling’s top line also benefitted from the expansion of Monster Beverage Corporation’s (NASDAQ:MNST) product distribution throughout the company’s territory.
The company plans to further expand its distribution territory and acquire additional production centers from Coca-Cola as part of the latter’s global re-franchising initiatives in 2016.
During second-quarter 2016, the company expanded its territories to include Maryland and Delaware and acquired two additional manufacturing facilities in Maryland, under its agreement with Coca-Cola. Most of The Coca-Cola Company’s beverages are manufactured, sold and distributed by independent bottling partners like Coca-Cola Bottling Co, Coca-Cola European Partners Plc. (NYSE:CCE) and Coca-Cola FEMSA S.A.B de C.V.
Comparable operating income from operations increased 12.4% to $43.0 million driven by strong revenues and the leveraging of selling, delivery and administrative expenses.
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