Coca-Cola Iceceks market is expanding beyond Turkey

Coca-Cola Icecek's market is expanding beyond Turkey

Coca-Cola Icecek's first-half results have hit the “sweet spot”, an analyst has said, with the company finding healthy volume and revenue growth as its international business expands. 

Robust pricing and better promotion management meant higher volumes have not come at the expense of sales, analysts Nomura said in a note today (29 August) following CCI's H1 results. Strong underlying trends in the company's markets also mean the outlook for the group is positive, Nomura said.

“Coca-Cola Icecek, we believe, 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 the company operates,” the note said. “The company also benefits from strong market positions and experienced management.”

CCI's main market is Turkey, but it is expanding into Middle Eastern and Central Asian countries such as Pakistan, Iraq and Syria. International markets make up 32% of sales compared to 24% in first-half results last year.

CCI reported a 127% rise in first-half profits this year, with operating profit up 51.5% and volumes up 10.7% over the same period last year. Revenue-per-case growth was up 14% in the second quarter compared to a year earlier, Nomura said.

The analyst stood by its “buy” recommendation on CCI and increased its target price from TRY27 (US$14.87) to TRY36.50. 

CCI shares today stood at TRY31.10.