TURKEY: Coca-Cola Icecek nine-month profits crumple, sales strong
- Nine-month net profits slide by 39% to TRY146.3m (US$82.3m)
- Net sales rise by 23% to TRY2.74bn
- Operating profits (EBIT) rise by 9% to TRY312.4m
- Group reports strong soft drinks sales gains in both Turkey and international businesses
Coca-Cola Icecek's nine-months profits slide
Coca-Cola Icecek has reported strong sales for the first nine months of 2011, but profits were damaged by higher costs and foreign exchange charges.
Foreign exchange losses on company loans were predominantly responsible for a 39% drop in Coca-Cola Icecek's (CCI) net profits for the nine months to the end of September. Profits sank to TRY146.3m (US$82.3m), the Turkey-based soft drinks group said today (3 November).
The fall overshadowed a 23% jump in net sales over the same period of 2010, to TRY2.74bn. Net sales rose by almost 18% in Turkey, which accounts for around three quarters of group net sales.
The international business division performed even better, with nine-month sales up by 37%. Higher prices helped value sales to faster than volumes in both business units, with global volumes up by 16% for the nine-month period.
There was particularly strong growth from the Dogadan tea business in Turkey, while both carbonated and still drinks performed well. Group operating profits for the nine months increased by 9% to TRY312.4m.
But, higher costs ate into margins in Turkey, particularly in the third quarter. Earnings before interest and tax (EBIT) for Turkey operations in the third quarter slipped by 15%.
In the third quarter, CCI's overall net profits slumped by 59% to TRY64.8m. Net sales rose by 22.3% to TRY1.18bn, with EBIT up by almost 3% to TRY164.7m.
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