Strong Euro hits Coca-Cola HBC's Q1 as Nigeria bounces back
- Q1 net sales down 3% to EUR1.3bn (US$1.5bn)
- Volumes flat at 440m cases
- Currency-neutral net sales per case up 2%
Coca-Cola HBC saw a drop net sales in the three months to 1 April
Coca-Cola HBC (CCHBC) has posted a drop in first-quarter sales as a strong Euro hit the top line.
Q1 net sales were down 3% to EUR1.3bn (US$1.5bn) in the three months to the end of 1 April, the Coca-Cola bottler said on Friday. Volumes were flat at 440m cases in the same period.
However, stripping out currency effects - which particularly affected CCHBC's emerging markets - net sales per case increased by 2%. On a currency-neutral basis, sales per case in the emerging markets segment were up by 6.5% compared to a 3% drop on a reported basis. Emerging markets volumes increased by 1%.
CCHBC said there were strong performances from most of the countries in the emerging markets segment, particularly Nigeria. However, gains were partly offset by a volume decline in Russia "where we continue to operate against a challenging backdrop".
The improvement in Nigeria follows a tough full-year performance in the country, where a weak Naira faced a potential devaluation. Nigeria accounted for about 10% of CCHBC's profits in 2015 and about 40% of its volumes growth, according to analysts.
On Friday, CCHBC's stock price tumbled as much as 6% before rallying slightly.
To read the company's official results release, click here.
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