TURKEY: Coca-Cola Icecek stays strong in YTD as profits soar
- Nine-month net profits jump by 159% to TRY379.2m (US$210.4m)
- Net sales up by 20% to TRY3.29bn
- Operating profits YTD rise by 42% to TRY610.5m
- International volumes up by 27% to 217m cases
Coca-Cola Icecek is getting a big boost from its international markets
Falling input costs and a strong performance in export markets has helped Coca-Cola Icecek post a healthy uplift in nine-month profits and sales.
Net profits in the nine months to the end of September jumped by 159% to TRY379.2m (US$210.4m), the Istanbul-headquartered company said last week. Sales in the period rose by 20% year-on-year to TRY3.29bn.
Operating profits were up 42% to TRY610.5m. This follows similarly positive H1 results for the Coca-Cola bottler.
Q3 net profits leapt by 199% to 193.6m, while sales were up 16% at TRY1.4bn. Operating profits in the period rose by 39% to 285m.
Domestic volumes were flat in Q3, but international volumes saw a 23% uplift.
CEO Damian Gammell said the group, which is 20%-owned by the Coca-Cola Co, had capitalised on “strong volume growth, favourable pricing, and declining input costs in a stable foreign exchange environment.”
On its export performance, he added: “This remarkable performance was driven by strong growth in our key markets where Pakistan, Kazakhstan, Azerbaijan and Iraq posted double-digit volume growth.”
Looking ahead, Gammell said: “We continue to expect consolidated low double-digit volume growth, revenue growth to be ahead of volume growth and EBITDA margin expansion for the full-year.”
Analysts Nomura said today (21 November) the company is “one of the most compelling top-line stories within global beverages, given favourable demographics and low per-capita consumption of soft drinks in the territories in which it operates”.
The group also benefits from strong market positions and experienced management, Nomura said in a note.
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