Analysis - Coca-Cola Icecek in line for 2014 election bounce
CCI is a "compelling" business
Coca-Cola Icecek will rebound in Turkey next year after weak consumer confidence hurts this year's volumes, an analyst has predicted.
Presidential elections in CCI's home market of Turkey will help boost volumes by 4% in 2014 after slowing to an estimated 3% growth for 2013's full year, Nomura's Edward Mundy suggested. Nomura had previously estimated 7% volumes growth for this year but reduced its outlook after CCI posted a weaker-than-expected domestic performance in H1 results, released on Wednesday.
The results revealed a Q2 slowdown in CCI's Turkish market, which accounts for 58% of sales. Q2 volumes were up by 3.5%, while net sales increased by 9%. In Q1, volumes rose by 7.5% and sales increased by 16.1%.
CCI blamed bad weather and civil unrest in June for the slowdown. However, Mundy today said consumer confidence in Turkey has been hit by “interest rate shocks, the volatile currency and higher food price inflation”.
Munday also reiterated Nomura's view that CCI “is one of the most compelling top-line growth stories within global beverages”.
Sectors: Soft drinks
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