Coca-Cola Enterprises, Inc. Reports Third-Quarter 2014 Results and Full-Year Earnings Outlook

Coca-Cola Enterprises, Inc. (NYSE: CCE)(Euronext Paris: CCE) today reported third-quarter operating income of $345 million on a reported basis, or $338 million on a comparable basis. In the quarter, reported earnings per diluted share totaled 96 cents, or 92 cents on a comparable basis. Currency translation had a positive impact of approximately 3 cents on comparable earnings per diluted share compared to the same quarter a year ago. Items affecting comparability are detailed on pages 10 through 13 of this release.

Net sales totaled $2.1 billion in the quarter, down 1½ percent on a reported basis versus the same quarter a year ago, or down 3½ percent on a currency-neutral basis.

“We continue to face operating challenges, including sustained macroeconomic softness, a difficult retail environment, and poor weather early in the quarter,” said John F. Brock, chairman and chief executive officer.

“We expect most of these operating conditions will persist, and as we have done in the past, we will manage each element of our business to position our company to achieve our primary objective – delivering shareowner value,” Mr. Brock said. “At every level of our company, we are committed to the operating excellence necessary to reach this goal.”

OPERATING REVIEW

Third-quarter volume declined 4 percent, reflecting the impact of weather, particularly in France, prior-year hurdles, ongoing macroeconomic trends, and marketplace pressures. Both sparkling and still brands declined 4 percent. Coca-Cola trademark brands declined 3½ percent. Energy grew 5½ percent. Volume in Great Britain declined 2½ percent, and volume in continental Europe (including Norway and Sweden) declined 5 percent.

Net pricing per case in the third quarter was flat, while cost of sales per case declined 1 percent. Operating expenses declined 3 percent. These figures are comparable and currency-neutral.

“Continuing to provide world-class service to our customers, solid support for our industry-leading brand portfolio, and the highest levels of execution is essential,” said Hubert Patricot, executive vice president and president, European Group. “With new brand and product initiatives such as Coca-Cola Life and smartwater, impactful promotions, and a range of package innovations, we remain confident in our ability to execute and deliver value to customers and consumers.”

FULL-YEAR 2014 OUTLOOK

For 2014, CCE expects comparable and currency-neutral earnings per diluted share growth of approximately 10 percent. Based on recent rates, currency translation would benefit full-year 2014 earnings per diluted share by approximately 3 percent.

Net sales for 2014 are now expected to be essentially flat and operating income is now expected to grow in a low single-digit range, both on a comparable and currency-neutral basis. This guidance is driven by the impact of ongoing challenging macroeconomic, customer, and consumer conditions.

The company continues to expect 2014 free cash flow of approximately $650 million. Capital expenditures are now expected to be approximately $325 million. Weighted-average cost of debt is expected to be approximately 3 percent, and the comparable effective tax rate for 2014 is expected to be approximately 27 percent.

Through the third quarter of 2014, the company has repurchased approximately $800 million of its shares, reaching the previously disclosed full-year target. Share repurchase plans may be adjusted depending on economic, operating, or other factors, including acquisition opportunities.

“While our revised operating outlook is below our original expectations for the year, we remain focused on seeking ways to improve growth, generate cash from operations, optimize our balance sheet, and importantly, use cash to create shareowner value,” said Nik Jhangiani, senior vice president and chief financial officer.

CONFERENCE CALL

CCE will host a conference call with investors and analysts today at 10 a.m. EDT. The call can be accessed through the company’s website at www.cokecce.com.

ABOUT CCE

Coca-Cola Enterprises, Inc. (CCE) is the leading Western European marketer, producer, and distributor of non-alcoholic ready-to-drink beverages and one of the world’s largest independent Coca-Cola bottlers. CCE is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. We operate with a local focus and have 17 manufacturing sites across Europe, where we manufacture nearly 90 percent of our products in the markets in which they are consumed. Corporate responsibility and sustainability is core to our business, and we have been recognized by leading organizations in North America and Europe for our progress in water use reduction, carbon footprint reduction, and recycling initiatives. For more information about our company, please visit our website at www.cokecce.com and follow us on twitter at @cokecce.

FORWARD-LOOKING STATEMENTS

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 Securities and Exchange Commission (“SEC”), including our most recent Form 10-K and other SEC filings.