Coca-Cola Consolidated Reports Second Quarter and First Half 2021 Results | News

Second quarter of 2021 internet gross sales elevated 17% versus the second quarter of 2020, with bodily case quantity up 6%(a).Second quarter of 2021 earnings from operations was $121 million, up $38 million, or 45%, versus the second quarter of 2020.Income from operations for the primary half of 2021 was $215 million, up $99 million, or 86%, versus the primary half of 2020(b).Key ResultsSecond Quarter and First Half 2021 ReviewCHARLOTTE, N.C., Aug. 10, 2021 (GLOBE NEWSWIRE) — Coca-Cola Consolidated, Inc. (NASDAQ: COKE) in the present day reported working outcomes for the second quarter and first half ended July 2, 2021.“Our sturdy 2021 working outcomes continued within the second quarter as optimistic quantity progress, stable worth realization and disciplined working expense administration drove our second quarter working earnings up 45% versus the prior yr interval,” mentioned J. Frank Harrison, III, Chairman and Chief Executive Officer. “I’m so grateful for our devoted teammates, who execute at an extremely excessive degree throughout each a part of our enterprise every single day. Despite all of the challenges of the previous yr, they’re working exhausting to make sure we meet the wants of our clients and our shoppers. This sturdy execution and the ensuing elevated money circulate are enabling us to reinvest in our teammates, scale back debt and make strategic capital investments for the long-term well being of the enterprise.”Physical case quantity elevated 5.9% within the second quarter of 2021. Sparkling quantity remained flat within the second quarter of 2021, whereas Still quantity elevated 20.9%. The Still class progress accelerated because of the re-openings of sure small shops and accounts the place our merchandise are consumed on-premise. The Still progress was pushed primarily by BodyArmor, AHA and Monster manufacturers. Sales of multi-serve packages in bigger retail shops remained very sturdy, whereas single-serve gross sales improved in small shops and different speedy consumption channels. Physical case quantity within the first half of 2021 elevated 5.3%.Revenue elevated 16.8% within the second quarter of 2021 pushed by the numerous improve in gross sales of Still drinks, which typically carry a better promoting worth per case than Sparkling drinks. The re-opening of sure small retailer and different speedy consumption channels helped drive the expansion in Still drinks as these channels have a better mixture of Still drinks than take-home retailers. In addition, the rise in income was pushed by worth realization on most Sparkling packages. Sales of multi-serve PET packages have been particularly sturdy within the quarter as we adjusted our industrial plans to emphasise these packages to enhance our assortment of multi-serve can merchandise in take-home retailers. Sales progress in on-premise channels is now outpacing take-home channels, however we proceed to see sturdy demand for future consumption packages. Revenue from fountain syrup, which is primarily bought by means of eating places, comfort shops, amusement parks, and different on-premise retailers, elevated $20.8 million, or 92.4%, through the second quarter of 2021 as these retailers started to function at increased ranges of capability. For the primary half of 2021, income elevated $302.7 million, or 12.6%.Gross revenue within the second quarter of 2021 elevated $65.6 million, or 15.3%, whereas gross margin decreased 50 foundation factors to 34.5%. The enchancment in gross revenue was primarily as a result of sturdy quantity progress in our Still class and worth realization inside our Sparkling class. The decline in gross margin was pushed primarily by the elevated mixture of Still drinks, which typically carry decrease gross margins than Sparkling packages. In the primary half of 2021, we skilled will increase in our main enter prices, together with aluminum, PET resin and excessive fructose corn syrup, and we count on elevated costs to proceed by means of the stability of the yr. We presently plan to move alongside worth will increase to our clients within the third quarter of this yr in an effort to offset this price strain. Gross revenue within the first half of 2021 elevated $109.0 million, or 13.1%.“Our second quarter outcomes have been extremely sturdy, particularly contemplating the present working surroundings of rising commodity prices, labor shortages for a lot of of our entrance line positions and challenges with some inbound manufacturing inputs,” mentioned Dave Katz, President and Chief Operating Officer. “Our sturdy gross sales progress of 17% within the second quarter displays our success in executing key model methods that embody Coca-Cola Zero Sugar, BodyArmor, AHA and smartwater. We are targeted on executing with excellence throughout our enterprise as client exercise features momentum in channels that have been closed or severely restricted by COVID protocols.”Selling, supply and administrative (“SD&A”) bills within the second quarter of 2021 elevated $27.9 million, or 8.1%. SD&A bills as a proportion of internet gross sales decreased 210 foundation factors within the second quarter of 2021. The improve in SD&A bills associated primarily to a rise in labor prices as in comparison with the second quarter of 2020. As channels of enterprise and native economies have re-opened in comparison with the prior yr interval, our labor bills have elevated. SD&A bills within the first half of 2021 elevated $9.9 million, or 1.4%. SD&A bills as a proportion of internet gross sales within the first half of 2021 decreased 290 foundation factors as in comparison with the primary half of 2020.“We are tightly managing our working bills whereas additionally taking actions to draw, reward and retain our entrance line teammates on this difficult labor surroundings. We proceed to spend money on our folks to make sure our wages, advantages and profession alternatives are aggressive and we’re seen as an employer of selection within the market,” Mr. Katz continued. “We stay optimistic concerning the stability of 2021 as we improve pricing on key packages to offset rising enter prices, execute towards a strong industrial calendar and proceed to drive efficiencies all through our operations.”Income from operations within the second quarter of 2021 was $120.9 million, in comparison with $83.1 million within the second quarter of 2020, a rise of 45.4%. On an adjusted(d) foundation, earnings from operations within the second quarter of 2021 was $120.7 million, a rise of 47.8%. For the primary half of 2021, earnings from operations elevated $99.1 million to $215.0 million.Net earnings within the second quarter of 2021 was $48.2 million, in comparison with $39.6 million within the second quarter of 2020, an enchancment of $8.6 million. Net earnings within the second quarter of 2021 was adversely impacted by honest worth changes to our acquisition associated contingent consideration legal responsibility, pushed primarily by modifications in future money circulate projections. Fair worth changes to this legal responsibility are routine and non-cash in nature. Income tax expense within the second quarter of 2021 was $17.3 million, in comparison with $15.2 million within the second quarter of 2020. Net earnings elevated $47.3 million within the first half of 2021 to $101.5 million as in comparison with the primary half of 2020.Cash flows supplied by operations for the primary half of 2021 have been $271.4 million, in comparison with $229.0 million for the primary half of 2020. The important improve in working money flows for the primary half of 2021 was a results of our sturdy working efficiency. The Company diminished excellent indebtedness by $162 million through the first half of 2021. We stay targeted on the efficient administration of our working capital and proceed to spend money on long-term strategic tasks to optimize our provide chain and higher serve our clients.About Coca-Cola Consolidated, Inc.Coca-Cola Consolidated is the biggest Coca-Cola bottler within the United States. Our Purpose is to honor God in all we do, serve others, pursue excellence and develop profitably. For over 119 years, we have now been deeply dedicated to the shoppers, clients and communities we serve and passionate concerning the broad portfolio of drinks and providers we provide. We make, promote and distribute drinks of The Coca-Cola Company and different associate firms in additional than 300 manufacturers and flavors throughout 14 states and the District of Columbia to over 66 million shoppers.Headquartered in Charlotte, N.C., Coca-Cola Consolidated is traded on the NASDAQ Global Select Market underneath the image COKE. More details about the Company is on the market at  www.cokeconsolidated.com. Follow Coca-Cola Consolidated on  Facebook,  Twitter,  Instagram  and  LinkedIn.Cautionary Information Regarding Forward-Looking StatementsCertain statements contained on this information launch are “forward-looking statements” that contain dangers and uncertainties. The phrases “anticipate,” “imagine,” “count on,” “challenge,” “might,” “will,” “ought to,” “may” and related expressions are meant to establish these forward-looking statements. These forward-looking statements mirror the Company’s finest judgment primarily based on present data, and, though we base these statements on circumstances that we imagine to be affordable when made, there could be no assurance that future occasions is not going to have an effect on the accuracy of such forward-looking data. As such, the forward-looking statements should not ensures of future efficiency, and precise outcomes might range materially from the projected outcomes and expectations mentioned on this information launch. Factors that may trigger the Company’s precise outcomes to vary materially from these anticipated in forward-looking statements embody, however should not restricted to: elevated prices, disruption of provide or shortages of uncooked supplies, gasoline and different provides; the reliance on bought completed merchandise from exterior sources; modifications in public and client notion and preferences, together with considerations associated to weight problems, synthetic components, product security and sustainability and model status; modifications in authorities rules associated to nonalcoholic drinks, together with rules associated to weight problems, public well being, synthetic components and product security and sustainability; the COVID-19 pandemic and different pandemic outbreaks sooner or later; decreases from historic ranges of promoting funding help supplied to us by The Coca‑Cola Company and different beverage firms; materials modifications within the efficiency necessities for advertising and marketing funding help or our incapability to fulfill such necessities; decreases from historic ranges of promoting, advertising and marketing and product innovation spending by The Coca‑Cola Company and different beverage firms, or promoting campaigns which are negatively perceived by the general public; any failure of the a number of Coca‑Cola system governance entities of which we’re a participant to perform effectively or on our greatest behalf and any failure or delay of ours to obtain anticipated advantages from these governance entities; provisions in our beverage distribution and manufacturing agreements with The Coca‑Cola Company that would delay or stop a change answerable for us or a sale of our Coca‑Cola distribution or manufacturing companies; the focus of our capital inventory possession; our incapability to fulfill necessities underneath our beverage distribution and manufacturing agreements; modifications within the inputs used to calculate our acquisition associated contingent consideration legal responsibility; expertise failures or cyberattacks on our expertise programs or our efficient response to expertise failures or cyberattacks on our clients’, suppliers’ or different third events’ expertise programs; unfavorable modifications within the basic financial system; modifications in our high buyer relationships and advertising and marketing methods; decrease than anticipated internet pricing of our merchandise ensuing from continued and elevated buyer and competitor consolidations and market competitors; the impact of modifications in our degree of debt, borrowing prices and credit score rankings on our entry to capital and credit score markets, working flexibility and skill to acquire extra financing to fund future wants; the failure to draw, practice and retain certified workers whereas controlling labor prices, and different labor points; the failure to keep up productive relationships with our workers lined by collective bargaining agreements, together with failing to renegotiate collective bargaining agreements; modifications in accounting requirements; our use of estimates and assumptions; modifications in tax legal guidelines, disagreements with tax authorities or extra tax liabilities; modifications in authorized contingencies; pure disasters, altering climate patterns and unfavorable climate; and local weather change or legislative or regulatory responses to such change. These and different components are mentioned within the Company’s regulatory filings with the United States Securities and Exchange Commission, together with these in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-Okay for the fiscal yr ended December 31, 2020. The forward-looking statements contained on this information launch communicate solely as of this date, and the Company doesn’t assume any obligation to replace them, besides as required by relevant legislation.FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)FINANCIAL STATEMENTS CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)NON-GAAP FINANCIAL MEASURES(e) The following tables reconcile reported outcomes (GAAP) to adjusted outcomes (non-GAAP):A PDF accompanying this launch is on the market at:  http://ml.globenewswire.com/Resource/Download/9432606d-03a3-4d5d-8bc9-0816bda53b80

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