GREECE: Coca-Cola Hellenic YTD profits fall as market toughens
- Net profits fall by 15% to EUR$237.7m (US$302.6m) in nine months to end of September
- YTD net sales increase by 3% to EUR5.47bn
- Operating profit falls by 14% to EUR380.9m
- Group volumes remain flat
Coca-Cola Hellenic is moving its shares to London
Coca-Cola Hellenic (CCH), the second-largest bottler of Coca-Cola products, has posted a 15% drop in nine-month net profits, blaming difficult trading environments in established markets.
Net profits fell to EUR$237.7m (US$302.6m) in the nine months to the end of September, the groupsaid today (8 November). Net sales increased by 3% to EUR5.47bn over the same period, while operating profits slid by 14% to EUR380.9m.
Q3 numbers were more positive, as net profits dipped only 1.1% to EUR146.5 in the and net sales rose by 6% to EUR2.04bn. Operating profits stayed flat at EUR211m.
Volumes in Q3 increased by 2%, but have dropped by1% in the year so far.
Pressures in Hellenic's established markets failed to be offset by growth in emerging markets. YTD volumes in Russia grew by high-single digits, Hellenic said, while volumes in Romania increased by low-single digits. In emerging markets overall, YTD net sales were up by 12% and operating profits jumped by 36%.
In contrast, established markets saw a 53% drop in YTD operating profits in the year so far.
The company said it had gained or maintained market share in “most of our markets” over the third quarter. Sales of brand Coca-Cola products increased by 3% in the third quarter and by 1% in the nine-month period, it said.
“Notwithstanding the encouraging results of the third quarter, we see the overall macroeconomic volatility and input cost pressures persisting,” Hellenic CEO Dimitris Lois said. “The environment in which we operate remains very challenging, particularly across our established markets.”
Hellenic's upcoming London stock exchange listing will enhance shareholder value, Lois added.
“It reflects the international nature of our business, as well as our shareholder base,” he said. “At the same time it will give us access to the largest pool of international investors, on the most liquid equity market in Europe providing flexibility to fund our future growth on competitive terms.”
Shares in Coca-Cola Hellenic stood at US$21.92 on the New York Stock Exchange at yesterday's close, down 1.04% in the day.
To read the company's official statement, click here.
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