just On Call - Coca-Cola Hellenic confident despite drop in profits
Coca-Cola Hellenic has a listing on the Athens and London stock exchanges
Coca-Cola Hellenic has remained upbeat about its future, despite the company recording a drop in nine-month profits.
Yesterday (8 November), the Greece-based bottler recorded a 28% drop in net profits to EUR302m (US$416.3m), for the nine months to the end of September. Operating profits followed suit, dropping by 25% to EUR468m.
Speaking on the company's earnings call yesterday, Coca-Cola Hellenic's CEO, Dimitris Lois, told analysts that, despite a deterioration in consumer confidence in its domestic market, the firm is focused on growing margins.
"There are more challenges for Greece in the near term as most of the austerity measures are yet to take effect," Lois said. "We expect disposable income decreases to decline further."
Nonetheless, he added: "We prefer to focus on our business and our financial results to achieve long-term profitable growth and reward our shareholders. We will never let something like that cloud the long-term."
Lois said that in addition to the company's listing on the Athens stock exchange, Coca-Cola Hellenic also has a secondary listing on the London stock exchange.
"There are several options for our investors to choose between," Lois told analysts. "We do not perceive that we are being punished for being also listed on the Athens stock exchange.
"Currently we operate in a volatile environment, characterised by declining consumer confidence, deteriorating economic conditions and unemployment," Lois said. "On top of that we have commodity costs. So, we are managing through a very tough and volatile commodity cost environment."
Coca-Cola Hellenic's share price dropped by 0.27% to EUR18.20 at 0949 EST.
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