Soft drinks manufacturing giant Coca-Cola Enterprises has warned of weakness in its second quarter. The European bottler has warned of handful of headwinds which have tempered the results. The company said that it will update its outlook for the rest of the year as soon as it releases the results from the second quarter in July 2013.
John F. Brock, Chief Executive, said, “Throughout 2012 and so far this year, we have faced challenging operating conditions, including persistent underlying macroeconomic weakness, significant headwinds from poor weather, the prolonged impact of a sharp excise tax increase in France, and a dynamic competitive environment in Great Britain”. Brock went on to say that the factors have been unexpectedly persistent and they disrupt the company’s outlook regarding the second quarter of 2013.
The company expects that the factors can be lessened later in the year, but there will be a better understanding of their importance during the prime selling season in the summer. Brock was also supposed to discuss these issues at a Deutsche Bank Global Consumer Conference held in Paris on June 11, 2013.
The Coca-Cola Enterprises had split from Coca-Cola company in 1986 in order to consolidate the independent bottling groups and has been grappling with the European economic conditions. In April 2013, the company predicted a full year earnings growth of 11 % to 12%.