GREECE: Coca-Cola HBC YTD profits, sales fall as volumes dip
- YTD net profits down 11% to EUR212.8m (US$287m)
- Net sales down 2.5% to EUR5.44bn
- Operating profits down 7% to EUR366.1m
- YTD volumes drop 2%
CCHBC is struggling in established markets
Coca-Cola HBC (CCHBC) has posted a drop in year-to-date profits and sales after volumes declines in Europe failed to offset emerging market gains.
Net profits fell by 11% to EUR212.8m (US$287m) in the nine months to 27 September, CCHBC said today (7 November). Net sales dipped by 2.5% to EUR5.44bn in the same period, while operating profits dropped by 7% to EUR366.1m.
Third-quarter results were similar, with profits down 1% to EUR147.3m and net sales down by 5% to EUR1.92m. Q3 operating profits, however, were up by 2% to EUR205.6m.
Overall volumes in the year-to-date dropped by 2% as CCHBC's “established markets”, which are mainly in Western Europe, fell by 5%. The company's “developing markets”, including Poland, Hungary and Czech Republic, saw YTD volumes drop by 3%, however “emerging markets”, such as Nigeria, Russia and Romania, posted a 1% volumes increase in the nine months.
CCHBC's CEO, Dimitris Lois, said: “The volume decline in our established and developing markets reflects the ongoing difficult macroeconomic environment in Europe. Our emerging markets were characterised by varying levels of performance and more difficult comparables, concealing the underlying growth in some of our countries. Trademark Coca-Cola products grew by 3% and remained a key driver of volume in the third quarter.”
Lois added that trading conditions will remain difficult for the rest of the year but that the company will continue to focus on “operating expense control”. The company admitted that its sales growth initiatives “were not sufficient to prevent a gross margin decline”.
CCHBC, which was previously known at Coca-Cola Hellenic, is undergoing a restructuring program that is expected to deliver EUR65m in cost benefits this year. It also switched its stock listing from Athens to London earlier this year.
Today, the company confirmed that on 20 September it was included as a constituent of the FTSE 100 and FTSE All-Share indices.
CCHBC's share price fell by 2.3% in morning trading today but has since rallied to a slight increase.
To read the company's full statement, click here.
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