GREECE: Coca-Cola Hellenic blames "extremely challenging year" for tough FY performance
- Net profits in 2011 drop by 37% to EUR268.9m (US$354.05m)
- Operating profits follow suit, falling 28% to EUR468.4m
- Net sales inch up by 1% to EUR6.85bn
- Last year was "exceptionally challenging", this year will bring "uncertainty and volatility" in most of CCH's EU markets
Coca-Cola Hellenic will be pleased to see the back of 2011
Coca-Cola Hellenic has warned that 2012 offers "uncertainty and volatility" as it posted tumbling profits and flat sales for 2011.
For the 12 months to the end of December, net profits slumped by 37% to EUR268.9m (US$354.05m), the Greece-based bottler reported today (15 February). Operating profits in the period slid by 28% to EUR468.4m.
The company blamed the impact of input cost pressures and currency volatility across all of its territories for the declines.
Sales in the period edged up 1% to reach EUR6.85bn.
In the fourth quarter, Coca-Cola Hellenic (CCH) made a net loss of EUR11.8m, compared to a net profit of EUR22m in the prior-year period. The company's operating loss widened by 46% to EUR25.3m, while sales dropped by 3% to EUR1.53bn.
"In 2012, we anticipate further input cost pressures and slowdown in Eurozone growth, leading to uncertainty and volatility in most of our EU markets," CCHsaid. "We have not yet seen signs of sustainable improvement in consumer confidence or a resolution of the sovereign debt crisis."
The company added that it expects an increase in total input costs in the high single-digits for 2012, primarily due to EU sugar and juice prices.
CCH said it will invest EUR1.45bn between 2012 and 2014 to boost its brands.
To download the company's official release, click here.
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