GREECE: Coca-Cola Hellenic to recover in long-term - analyst
Coca-Cola Hellenic should recover in the long-term, according to Nomura
Coca-Cola Hellenic is expected to be hampered by headwinds in emerging markets this year but will recover in the long term, according to an analyst.
The Athens-based group announced a 25% fall in H1 net profits on Tuesday (21 August), despite sales edging up.
Analyst Nomura warned that the group's margins are likley to be held back by negative forex headwinds in emerging markets for the rest of 2012. Margins in established markets will also be hit by issues such as "unfavourable packaging and category mix".
Nomura warned of "challenging near-term trading conditions in key markets".
"Austerity measures and deteriorating consumer confidence in key markets will act as a break on top-line momentum," the note said.
But looking ahead, it added: "We expect volumes to show recovery, pricing to improve and for group EBIT margins to return towards their pre-2008 levels."
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