Coca-Cola Bottling Co. Consolidated announced it earned $10.7 million, or basic net income per share of $1.16, on net sales of $430.7 million for the second quarter of 2012, compared to net income of $11.1 million, or basic net income per share of $1.21, on net sales of $422.9 million for the second quarter of 2011.
The results for the second quarter of 2012 included a $0.4 million increase in income tax expense due to recording of a valuation allowance for certain deferred tax assets and other income tax changes. The results for the second quarter of 2011 included $1.2 million of after-tax losses ($1.7 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges and other income tax changes.
On a comparable basis, the company earned $11.1 million in the second quarter of 2012, or comparable basic net income per share of $1.20, versus $12.3 million in the second quarter of 2011, or comparable basic net income per share of $1.33.
J. Frank Harrison, III, chairman and CEO, said in a prepared statement, “We are pleased with our revenue and gross margin growth in the second quarter and first half of 2012. Our revenue and gross margin growth was driven by slightly higher volume, increased pricing, and lower than expected cost increases in certain raw materials. We continue to seek innovation to deliver value to our customers through more targeted packaging, promotions and product enhancements. These investments along with those in infrastructure and people continue to help us be leaders in our industry.”
William B. Elmore, president and COO, added, “Our second quarter and first half results reflect strong growth in our still beverage portfolio. Channels of business showing the strongest results in the first half were value, drug and club. We remain focused on refining our price/package/brand/channel offerings to maximize the value we offer to our customers and consumers. The benefit from lower raw material costs was more than offset by higher S,D&A costs, primarily due to increased wage, healthcare and pension costs as well as ongoing investments in new technology. While raw material costs have been lower than expected during the first half of 2012, we anticipate that certain raw material costs, primarily sweetener derived from corn, will be higher in the second half of the year.”